Gold slips from records on stockists selling, weak global cues

Last Updated: Thu, Nov 29, 2012 10:18 hrs

New Delhi: Gold prices on Thursday slipped from record high levels by losing Rs 35 to Rs 32,940 per 10 grams due to fresh selling by stockists sparked by sharp fall in overseas markets.

Reduced offtake at existing higher levels further put pressure on the precious metals prices.

Silver followed suit and plunged by Rs 1,000 to Rs 62,000 per kg on reduced offtake by industrial units and coin makers.

Traders said stockist selling in tandem with a weak global trend where gold and silver fell the most in more than three weeks amid concern that budget talks to avoid the US fiscal cliff are making little progress, mainly influenced the sentiment.

Gold in global markets, which normally set price trend on the domestic front, fell by 1.7 per cent to USD 1,714.90 an ounce, biggest drop since November 2 and silver by 1.8 per cent to USD 33.47 an ounce, biggest decline since November 2 in New York.

In addition, fall in domestic demand at prevailing higher levels and investors shifting from weakening bullion to rising equity further dampened the sentiment, they said.

On the domestic front, gold of 99.9 and 99.5 per cent purity slipped by Rs 35 each to Rs 32,940 and Rs 32,740 per 10 grams, respectively. The metal had climbed to an all-time high level of Rs 32,975 in the previous session.

Sovereign declined by Rs 100 to Rs 25,600 per piece of eight grams.

Similarly, silver ready plunged by Rs 1,000 to Rs 62,000 and weekly-based delivery by Rs 1,600 to Rs 62,490 per kg on reduced offtake at existing higher levels.

Silver coins too tumbled by Rs 2000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.

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