Both gold and silver declined at the bullion market today on sustained selling by stockists and speculators due to a sharp fall in prices at the international market.

While gold shed Rs 220 to Rs 22,370 per 10 grams, silver tumbled by Rs 750 to Rs 52,550 per kg. In the previous session, silver had lost Rs 1,400 per kg and gold Rs 230.

Dealers said that the selling pressure gathered momentum after gold prices fell in the global market, as a pledge by European Union leaders to stabilise the region’s economy, slashed the demand for the metal.

Besides, sluggish demand at prevailing higher levels further dampened the trading sentiment, they added.

In the global markets, which normally set the price trend at the domestic front, gold fell by $19.60 to $1,500.90 an ounce, the lowest since May 19. In two days, the metal had slumped 3.4 per cent, the most since May 5.

Silver also declined by 1 per cent to $34.65 an ounce.

At the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 220 each to Rs 22,370 and Rs 22,250 per 10 grams, respectively. Sovereign followed suit and lost Rs 50 to Rs 18,650 per piece of eight gram.

In line with a general weakening trend, silver ready remained under selling pressure and dropped by Rs 750 to Rs 52,550 per kg. Similarly, weekly-based delivery plunged by Rs 815 to Rs 51,845 per kg.

Silver coins plunged by Rs 1,000 to Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces. Coins lost Rs 4,000 in the last two sessions.

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