Gold, silver fall further on reduced offtake, global cues

Both the precious metals, silver and gold, fell further today on reduced offtake by stockists and jewellers on sluggish demand at prevailing high levels amid a weak global trend. While silver fell by Rs 650 to Rs 54,050 per kg, gold shed Rs 40 to Rs 22,645 per 10 grams.

Silver had lost Rs 1,500 during the previous trading session, while gold declined by Rs 75 on Saturday. Silver coins followed suit and tumbled by Rs 1,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.

Trading sentiments weakened as gold declined in London after some investors sold the metal to cover losses in other commodity markets and equities.

Gold in global markets, which normally sets a price trend on the domestic front, fell by $6.80 to $1,524.85 an ounce and silver shed 1.9% to $35.48 an ounce. Apart from a weakening global trend, reduced offtake by retail customers at existing high levels further put pressure on the precious metals' prices. 

On the domestic front, silver ready dropped by Rs 650 to Rs 54,050 per kg and weekly-based delivery declined by Rs 515 to Rs 53,900 per kg.  

In line with a general weakening trend, the gold of 99.9 and 99.5% purity declined by Rs 40 each to Rs 22,645 and Rs 22,525 per 10 grams, respectively. However, sovereigns remained steady at Rs 18,700 per piece of eight grams.