Silver, gold reacts downward on global cues

Silver prices reacted downwards at the domestic bullion market today on hectic speculative and stockist sell-off impacted by bearish global sentiment.

Gold also declined on fresh stockist offering in a lacklustre activity on the back of poor local buying interest.

Silver ready (.999 fineness) tanked by Rs 1,320 per kg to finish at Rs 55,010 from Friday's closing level of Rs 56,330 per kg.

Standard gold (99.5 purity) dropped by Rs 70 per 10 grams to close at Rs 22,355 from overnight closing level of Rs 22,425.

Pure gold (99.9 purity) fell by Rs 65 per 10 grams to end at Rs 22,460 as against Rs 22,525 yesterday.

In the overseas market, the precious metals slumped on stronger dollar and easing inflationary worries which dipped the investment demand.

In New York, gold for August delivery moved down by $13.50 to $1,529.20 an ounce on the Comex division of the NYMEX yesterday.

July silver also lost $1.10 to $36.33 an ounce.