Both the precious metals decline on lower global cues

After showing gains for the last two days, both the precious metals reacted downwards on the bullion market here today on renewed offerings by stockists on the back of overnight fall in New York market.

Gold futures fell on Thursday as economic data showed US consumer spending grew in August at the fastest pace in eight years and as the dollar rebounded from recent lows, reducing gold's appeal as an investment hedge.
 
On the comex division of the New York mercantile exchange, the most active December contract dropped by $8.60 an ounce to $1,000.70, after hitting an earlier low of $998.80. Silver for December delivery also fell by 21.8 cents ann ounce to $16.44.

In London, gold was steady today, drawing little support from foreign exchange markets where the dollar was flat against a basket of currenices.

Turning to the local market, Standard gold (99.5 purity) dropped by Rs 50 per ten grams to Rs 15,590 from Rs 15,640.

Pure gold (99.9 purity) also fell by a similar margin to Rs 15,665 from Rs 15,715 previously.

Silver ready (.999 fineness) moved down by Rs 90 per kilo to Rs 26,445 from Rs 26,535 previously.