Gold, silver fall on sluggish demand, global cues

Last Updated: Fri, Jun 14, 2013 10:43 hrs
Customer looks in mirror after wearing gold earring inside jewellery shop in Hyderabad

New Delhi: Both the precious metals, gold and silver prices fell back in the national capital on Friday owing to slackened demand at prevailing higher levels amid a weak global trend.

While gold fell by Rs 360 to Rs 28,190 per 10 grams, silver lost by Rs 700 to Rs 44,000 per kg on reduced offtake by jewellery fabricators and industrial units.

Traders said sluggish demand at prevailing higher levels mainly pulled down both gold and silver prices.

Weak global trend as holdings in the largest bullion backed exchange-traded product dropped to the lowest level in more than four years amid speculation the Federal Reserve will curb stimulus, also influenced the sentiment, they said.

Gold in Singapore,which normally set price trend on the domestic front, fell by 0.3 per cent to USD 1,382.06 an ounce and silver by 0.6 per cent to USD 21.73 an ounce.

In addtion, investors diverted their funds from bullion to rising equity also reduced the metal demand.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 360 each to Rs 28,190 and Rs 27,990 per 10 grams, respectively. The metal had climbed by Rs 360 yesterday. Sovereigns followed suit and shed Rs 100 to Rs 24,300 per piece of eight grams.

Silver ready dropped by Rs 700 to Rs 44,000 per kg and weekly-based delivery by Rs 625 to Rs 43,285 per kg. The white metal had gained Rs 500 in the previous session.

Silver coins also plunged by Rs 1000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.

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