Gold,silver decline due to sluggish demand,global cues

While gold fell by Rs 10 to Rs 30,59/ 10 grams,silver shed Rs 300 to Rs 54,800/kg.

Written by Agencies | New Delhi | Published: June 21, 2012 4:08:50 pm

Both gold and silver declined marginally for the second day in a row in the bullion market on Thursday due to subdued demand amid weak trend in overseas markets.

While gold fell by Rs 10 to Rs 30,590 per 10 grams,silver shed Rs 300 to Rs 54,800 per kg on subdued demand at prevailing higher levels and slump in overseas markets.

Silver coins followed suit and plunged by Rs 1,500 to Rs 62,500 for buying and Rs 63,500 for selling of 100 pieces on account of reduced offtake at prevailing higher levels.

Marketmen said sentiment remained weak as gold declined in global markets after Federal Reserve,predicting slower progress in reducing unemployment,extended a program that is designed to lower long-term interest rates,known as “Operation Twist.”

In Singapore,gold fell by 0.6 per cent to USD 1,597.50 an ounce and silver by 1.5 per cent to USD 27.72.

Sluggish domestic demand at prevailing higher levels also influenced the precious metals,they added.

On the domestic front,gold of 99.9 and 99.5 per cent shed another Rs 10 each to Rs 30,590 and Rs 30,390 per 10 grams,respectively. The metal had lost Rs 150 in the previous session.

Sovereign remained steady at Rs 24,500 per piece of eight grams in scattered deals.

Silver ready remained under selling pressure and dropped by Rs 54,800 per kg and weekly-based delivery by Rs 385 to Rs 54,060 per kg. It had lost Rs 700 on Wednesday.

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