Gold drops for fifth day on global cues, silver eases

Gold prices continued to fall for the fifth straight day and hit over three-week low of Rs 26,700 per 10 grams by losing Rs 110 at the bullion market today, tracking a weakening global trend amid subdued demand from jewellers and retailers.
Silver too remained under selling pressure and fell further by Rs 250 to Rs 36,250 per kg.
Traders said besides a weakening global trend, as investors cut their holdings in bullion-backed funds to the smallest in two weeks on speculation that the Federal Reserve will raise interest rates in December, easing demand from jewellers and retailers mainly kept pressure on gold prices.

Globally, gold fell 0.73 per cent to trade at four-week low of USD 1,133.40 an ounce and silver shed 0.84 per cent to USD 15.41 an ounce in New York in yesterday's trade.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 110 each to Rs 26,700 and Rs 26,550 per 10 grams respectively, a level last seen on October 10. The precious metal had lost Rs 455 in the previous four sessions.
Sovereign also eased by Rs 100 to Rs 22,300 per piece of eight grams.
In a similar fashion, silver ready fell further by Rs 250 to Rs 36,250 per kg and weekly-based delivery by Rs 205 to Rs 36,220 per kg.

Silver coins, however, remained unaltered at Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.