Gold at 5-week low on lower offtake, weak global cues

Metal sheds Rs 100 to Rs 28,440 per 10 gm as stockists sell and retailers see further correction

Gold prices fell for the third straight day to trade five weeks low in the national capital today on reduced offtake by stockists, sparked by a weakening trend in international markets.

After losing Rs 270 in the last two sessions, gold prices fell further by Rs 100 to Rs 28,440 per 10 gm on stockists selling and retailers expecting more correction in the metal's prices signalled by weak global trend.

The gold in overseas region entered a so-called bear market, dropping for a fourth day, after Greek leaders failed to form a government, increasing speculation that the country may quit the euro zone and driving the Dollar to a record high.

The precious metal in Asia lost 0.7% to $1,533 an ounce, more than 20% below its all-time high last September, cheapest since December 29.

Besides, off-marriage and festival season and retailers expecting more correction in futures, further dampened the trading sentiment.

In the national capital, the gold of 99.9% and 99.5% purity fell by Rs 100 to Rs 28,440 and Rs 28,300 per 10 gm, respectively. Sovereign lost Rs 50 to Rs 23,600 per piece of eight gram.

In line with the general weakening trend, silver ready plunged by Rs 800 to Rs 52,300 per kg and weekly-based delivery by Rs 200 to Rs 52,300 per kg. The metal in last two sessions lost by Rs 660 per kg.

The silver coins dropped by Rs 1,000 to Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.