Gold down, silver falls from record highs on reduced offtake

Ignoring a firm global trend, silver prices fell from record levels and gold declined in the national capital today on reduced offtake by retailers at existing higher levels.

While silver lost Rs 200 to Rs 37,500 per kg on reduced offtake by industrial units at prevailing higher levels, gold fell by Rs 100 to Rs 19,900 per 10 gram.

Silver coins, which had recorded a historic rise of Rs 6,200 in the previous session, rolled back by Rs 1,500 to Rs 41,000 for buying and Rs 41,100 for selling of 100 pieces.

Market analysts said fall in demand from retailers at existing higher levels led to fall in prices of precious metals.

They said the global trend, which normally sets a price trend on the domestic front, failed to influenced the market sentiment.

Gold rose in overseas markets, as weakening dollar increased the appeal of precious metals as alternative investments. Silver continued to trade near a 30-year high.

On the domestic front, silver ready declined by Rs 200 to Rs 37,500 per kg on reduced offtake by industrial units and coins makers. It had surged to an all-time high of Rs 37,700 per kg in the previous trading session.

Weekly-based silver delivery moved down by Rs 295 to Rs 37,000 per kg on lack of sizable speculators' support.

The gold of 99.9 and 99.5 per cent purity fell by Rs 100 each to Rs 19,900 and Rs 19,800 per 10 gram, respectively. Sovereign remained stable at Rs 15,950 per piece of eight gram in restricted buying.