Gold snaps two-day gains, down Rs 50 on weak global cues

After two days of gains, gold prices fell by Rs 50 to Rs 28,450 per ten gram at the bullion market in the national capital today on stockists selling, triggered by a weak global trend.

Silver followed suit and eased by Rs 350 to Rs 45,150 per kg on reduced offtake by industrial units and coin makers.

Marketmen said stockists selling in tandem with a weak global trend amid speculation that the Federal Reserve will raise US interest rates sooner than expected mainly influenced the sentiment.

Gold in New York, which normally sets price trend on the domestic front, fell by 0.6% to $1,309.40 an ounce and silver by 1.2% to $20.88 an ounce.

Besides, fall in domestic demand at prevailing higher levels further fuelled the downtrend, they said.

In Delhi, gold of 99.9 and 99.5% purity declined by Rs 50 each to Rs 28,450 and Rs 28,250 per ten gram, respectively. It had gained Rs 325 in the previous two sessions. Sovereign, however, held steady at Rs 24,900 per piece of eight gram.

In line with a general weak trend, silver ready dropped by Rs 350 to Rs 45,150 per kg and weekly-based delivery by Rs 410 to Rs 44,930 per kg. It had rallied by Rs 650 in last two days.

Silver coins also plunged by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.