Gold falls for third day on weak global cues, loses Rs 220

Gold prices tumbled for the third straight day in the bullion market today, losing Rs 220 to Rs 18,640 per ten grams on heavy selling by stockists in tandem with the weakening global trend.

Selling of scrap gold by retail customers at existing higher levels also influenced the trading sentiment. The lack of demand from retailers at existing higher levels further dampened the market sentiment, traders said.

Pure gold (99.9) plunged by Rs 220 to Rs 18,640 per ten grams in the domestic market, while gold of 99.5 per cent purity lost Rs 210 to Rs 18,550 per ten grams. Gold had lost Rs 150 in yesterday's trading session.

The global trading sentiment was bearish over concerns that growth will slow in China. Gold in global markets, which normally sets the price trend on the domestic front, fell by 0.4 per cent to $1,202.30 an ounce.

With the general weakening trend, silver ready fell by Rs 600 to Rs 29,000 per kg on poor offtake by industrial users and coin-makers. Silver for weekly-based delivery lost Rs 540 to Rs 28,595 per kg.

Silver coins were also being traded lower by Rs 100 at Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.