Gold loses glitter for 5th straight day on weak global cues

For the fifth consecutive session gold lost its sheen in the national capital today by shedding Rs 150 to Rs 20,220 per ten grams amid a weak trend overseas.

Similarly, extending its losing streak for the seventh session, white metal silver today tanked by Rs 300 to Rs 39,200 a kg on sustained selling sparked by weak global cues.

While in last four days gold has lost Rs 230, silver tumbled by Rs 2,200 in six trading sessions on sustained selling by stockists and reduced offtake at existing higher levels.

Selling pressure further gathered momentum as gold fell in international markets as dollar traded at a near seven-week high against major currencies thus eroding the appeal of the metal as an alternate asset.

Gold in overseas markets, which normally sets the price trend on the domestic front, lost 0.6 per cent to $1,332.15 an ounce, heading for the longest slump since July. Silver also fell 0.8 per cent to $25.28 dollar an ounce.

The US dollar rallied to its highest level since September 28, against a basket of six counterparts amid concerns that a failure to craft a rescue package for Ireland will allow the nation's banking crisis to spread.

The trading sentiment was also influenced following a World Gold Council report that India's gold import so far this year has exceeded 2009 levels.

Ripples were felt in the domestic markets here as gold of 99.9 and 99.5 per cent purity dropped by Rs 150 each at Rs 20,220 and Rs 20,090 per ten grams, respectively. Sovereign also declined by Rs 50 to Rs 16,350 per piece of eight grams.

Silver ready plunged by Rs 300 to Rs 39,200 per kg and weekly-based delivery by a same margin to Rs 38,755 per kg. Silver coins were down by Rs 100 to Rs 43,700 for buying and Rs 43,800 for selling of 100 pieces.