Weekly Market Report - Bullion Market

BULLION: Both precious metals, silver and gold recorded major losses in the national capital during the past week on emergence of frantic selling by stockists triggered by a weak global trend.

Traders said selling pressure gathered momentum after gold fell in overseas markets on speculations that borrowing costs will rise as the economy recovers, eroding the metal's appeal as an alternative investment option.

Fall in demand at existing higher levels also dampened the trading sentiment, they said.

On the domestic front, silver ready commenced the week steady at Rs 44,000 per kg and climbed to Rs 44,800 on some buying. However, it met with heavy selling by stockists in line with a weakening overseas trend and dropped to close lower by Rs 1,000 to Rs 43,000 per kg.

Similarly, the silver weekly-based delivery plunged by Rs 1,115 to Rs 42,700 per kg. 

Silver coins followed suit and nosedived to Rs 48,400 for buying and Rs 48,500 for selling of 100 pieces against last week's close of Rs 50,300 and Rs 50,400.

In line with a general weakening trend, the gold of 99.9 and 99.5 per cent purity fell by Rs 165 each to Rs 20,370 and Rs 20,250 per ten grams, respectively. Sovereign too lost Rs 100 to Rs 16,800 per piece of eight grams.