Gold, silver skid on weak global cues, sluggish demand

Both gold and silver declined on the bullion market today on sustained selling by stockists and speculators due to a sharp fall in prices of the precious metals in the international market.  

While gold shed Rs 220 to Rs 22,370 per 10 grams, silver tumbled by Rs 750 to Rs 52,550 per kg. In the previous session silver had lost Rs 1,400 per kg and gold Rs 230.

Dealers said that selling pressure gathered momentum after gold prices fell in the global market, as a pledge by European Union leaders to stabilise the region's economy slashed demand for the metal.

Besides, sluggish demand at prevailing higher levels further dampened the trading sentiment, they added. 

Gold in global markets, which normally sets the price trend on the domestic front,fell by $19.60 to $1500.90 an ounce, the lowest since May 19. In two days, the metal slumped 3.4%, the most since May 5. 

Silver also declined by 1% to $34.65 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity plunged by Rs 220 each to Rs 22,370 and Rs 22,250 per 10 grams, respectively. Sovereign followed suit and lost Rs 50 to Rs 18,650 per piece of eight gram.  

In line with a general weakening trend, silver ready remained under selling pressure and dropped by Rs 750 to Rs 52,550 per kg. Similarly, weekly-based delivery plunged by Rs 815 to Rs 51,845 per kg.   

Silver coins plunged by Rs 1,000 to Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces. Coins lost Rs 4,000 in the last two sessions.