Silver sheds Rs 1,400, gold down by Rs 230 on weak global cues

Both the precious metals registered notable losses today on brisk selling by stockists, driven by weak global trend. While silver plunged by Rs 1,400 to Rs 53,300 per kg, gold shed Rs 230 to Rs 22,590.

Silver coins followed suit and nosedived by Rs 2,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces. The coins had suffered similar losses during the previous trading session.

Market analysts said the precious metals' fell as nervous stockists indulged in off-loading of their positions after the the metals suffered heavy losses in New York last evening.

In overseas markets, gold dropped from a seven-week high to $1,521.30, losing $32.10, its biggest drop since May 5, as the US central bank damped speculation it would expand stimulus measures and the dollar strengthened, curbing demand for the metal as an alternative investment.

The white metal also declined by 1.5% to $36.19 an ounce.

Besides, retail customers and jewellers refrained from buying and preferred to purchase on further falls, which further dampened the trading sentiment.

On the domestic front, silver ready dropped by Rs 1,400 to Rs 53,300 per kg and weekly-based delivery shed Rs 1,600 to Rs 52,660 per kg, respectively. 

The gold of 99.9 and 99.5% purity lost by Rs 230 each to Rs 22,590 and Rs 22,470 per 10 gram, respectively. Sovereigns held unchanged at Rs 18,700 per piece of eight grams.