Gold down to Rs 22,120 despite heavy buying on 'Akshaya Tritiya'

Even as buying activity remained high on the auspicious day of 'Akshaya Tritiya', both the precious metals tumbled today on weak global cues. Silver nose-dived by Rs 6,000 to Rs 53,200 per kg and gold plummeted by Rs 225 to Rs 22,120 per 10 grams. 

Retail customers resorted to active gold buying to mark the day of Akshaya Triitya, considered to be an auspicious occasion in Hindu mythology to make token purchases.

Traders said the demand among retailers for the festival had hardly any impact of the sliding precious metals prices despite the ongoing weakening trend in domestic as well as overseas markets.

"The weakening trend has hardly impacted retailers activity as they are dedicatedly making token buying in gold on every fall in the market," said Suresh Verma, a Delhi-based jeweller. "At least the buying has capped any major fall in gold prices, while silver remained unattended, losing substantial ground," he said.   

Trading sentiments remained weak in silver as its prices recorded a steepest weekly fall since 1975 in global markets after impositions of higher margins. Gold also had its biggest weekly drop since February 27, 2009. 

Silver in global markets, which normally sets a price trend on the domestic front, fell 12.01% to $34.66 an ounce, taking losses to 28 per cent this week and gold by $43.40 to $1,473.10 an ounce in New York.  

The Standard and Poor's GSCI index of 24 commodities sank 6.5% on concern that slower global growth may crimp demand and investors sold to book-profits and shift their funds to surging equity markets. 

On the domestic front, silver ready nose-dived by Rs 6,000 to Rs 53,200 per kg and weekly-based delivery by Rs 5,900 to Rs 53,100 per kg. Silver coins lost Rs 4,000 to Rs 59,500 for buying and Rs 60,500 for selling of 100 pieces. 

In line with a general weakening trend, gold of 99.9 and 99.5% purity plunged by Rs 225 each to Rs 22,120 and Rs 22,000 per 10 grams, respectively.

However, sovereigns, found scattered buying support from retailers and gained Rs 100 to Rs 18,300 per piece of eight grams.