Gold declines to Rs 21,135 on global cues

Both the precious metals, gold and silver, fell further today on heavy offloading, due to a weakening trend in global markets. While gold shed Rs 35 to Rs 21,135 per 10 grams, silver lost Rs 500 to settle at Rs 55,700 per kg.

Trading sentiments turned bearish after gold declined in the global markets on bets that the rally to a record was overdone. Silver also fell as the dollar rose against a basket of major currencies and US equities gained.

Besides, fall in demand at existing high levels also dampened trading sentiments.

In global markets, gold fell by $8.70 to $1,426.20 an ounce, while silver shed 32.6 cents to $37.04 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity remained weak and lost Rs 35 each to Rs 21,135 and Rs 21,015 per 10 grams, respectively. The metal had lost Rs 70 in the previous session.

However, sovereigns remained steady at Rs 17,500 per piece of eight grams in thin trade.

Silver ready remained under selling pressure and fell further by Rs 500 to Rs 55,700 per kg, in line with a fall of Rs 200 yesterday. The white metal for weekly-based delivery fell by Rs 370 to Rs 55,430 per kg.

However, silver coins rose by Rs 300 to Rs 59,500 for buying and Rs 60,000 for selling of 100 pieces.