Gold, silver drop further on sustained selling, global cues

Extending losses for a second straight day, gold fell Rs 175 to Rs 30,050 per 10g in the national capital on Tuesday, on sustained selling by stockists amid weakening global trend. Silver also declined for a consecutive session by Rs 120 to Rs 43,740 a kg on reduced offtake by jewellers and industrial units.

Traders said sustained selling stockists on the back of sluggish demand mainly kept pressure on precious metals.

Weak on global trends, where gold traded below $1,200 an ounce, as investor holdings retreated and US equities climbed to a record high amid signs of an improving economy, further dampened the sentiment, they said. Gold in Singapore, which normally sets price trend on the domestic front, traded at $1,199.10 an ounce and silver dropped 0.5 per cent to $19.37 an ounce.

Besides, strengthening the rupee against the dollar, which makes the dollar-priced precious metal's import cheaper, too influenced the sentiment, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity remained under selling pressure and lost another Rs 175 each at Rs 30,050 and Rs 29,850 per 10g, respectively. It had lost Rs 175 on Monday.

Sovereign, however, held steady at Rs 25,100 per piece of eight gram in limited deals.

Similarly, silver ready declined by Rs 120 to Rs 43,550 a kg and weekly-based delivery by Rs 230 to Rs 43,740 a kg. The white metal had shed Rs 280 in the previous session.

Silver coins followed suit and dropped by Rs 1,000 to Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.