Commodities

Gold, silver fall on weak global cues, subdued demand

PTI New Delhi | Updated on February 03, 2011

Gold ornaments on sale at a jewellery shop. (file photo)   -  The Hindu

Both the precious metals, gold and silver, fell on frantic selling by stockists due to weak trend overseas.

Silver fell by Rs 400 to Rs 43,600 per kg, while gold lost Rs 150 to Rs 20,100 per 10 grams.

Trading sentiment turned bearish after the yellow metal declined in the global markets on hopes that an economic recovery in US will erode the allure of precious metals as an alternative investment, amid concerns of rising inflation and escalating protests in Egypt.

Gold in global markets, which normally sets the price trend at the domestic front, fell by 0.3 per cent to $1,331.50 an ounce.

Besides, fall in demand at the existing higher levels and shifting of funds from weakening bullion to rising equities also influenced the trading sentiment to some extent.

At the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 150 and Rs 130 to settle at Rs 20,100 and Rs 20,000 per 10 grams, respectively. The metal lost Rs 120 in the previous session.

Sovereign followed suit and declined by Rs 100 to Rs 16,650 per piece of eight grams.

In line with a general weakening trend, silver ready dropped by Rs 400 to Rs 43,600 per kg and weekly-based delivery by Rs 335 to Rs 43,335 per kg.

However, silver coins continued to be asked around the previous level of Rs 48,500 for buying and Rs 48,600 for selling of 100 pieces.

Published on February 03, 2011

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