In festive season,gold closes at two-week low

Despite the Diwali festivities,the retail consumers appetite for yellow metal appears to have subsided,as they prefer to stay on the sidelines,expecting further correction in prices,bullion traders said.

The metal has lost nearly 5 per cent this week.

Standard gold of 99.5 per cent purity dropped by Rs 140 to finish at Rs 30,370 per 10 grams from Fridays closing level of Rs 30,510. Pure gold of 99.9 per cent purity shed Rs 165 to close at Rs 30,520 per 10 grams from Rs 30,685.

Silver ready .999 fineness,however,recouped by a hefty Rs 475 to conclude at Rs 49,795 per kilo as compared to Rs 49,320 on Friday.

On the global front,gold slumped further on investor concerns after positive US manufacturing data and fall in jobless claims raised worries that the US Federal Reserve will scale back its bullion-friendly stimulus programmes in the coming months.

Investors shifting their funds from weakening bullion to surging equity market for safe investment also dampened the sentiment,traders added.

December gold contract lost 10.50 to settle at 1,313.20 an ounce on the New York Mercantile Exchange late on Friday and silver eased to end at 21.84 an ounce.