Gold drops for fourth day on sustained selling, global cues

Gold prices dropped for the fourth day by losing Rs 230 to Rs 29,350 per ten grams in the national capital today on sustained selling by stockists against subdued demand.
Silver also maintained a downward trend for the ninth day and lost Rs 550 to Rs 43,400 per kg on poor offtake by industrial units and coin makers.
Traders said besides sustained selling by stockists against subdued demand, strengthening rupee led to persistent fall in prices.
It fell further on weakening global trend as signs of recovery in the US economy reduced demand for the precious metals as safe haven.

Gold in London, which normally sets price trend on the domestic front, fell by 0.87 per cent to USD 1,294.40 an ounce and silver by 0.33 per cent to USD 19.67 an ounce.
Investors shifting their funds from weakening bullion to soaring equities too had a negative impact on the prices, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity remained under selling pressure and fell further by Rs 230 each to Rs 29,350 and Rs 29,150 per ten grams, respectively. The yellow metal had lost Rs 770 in last three sessions.
Sovereign followed suit and declined by Rs 100 to Rs 24,900 per piece of eight grams.

Silver ready moved down by Rs 550 to Rs 43,400 per kg and weekly-based delivery by Rs 670 to Rs 42,900 per kg. The white metal had lost Rs 3,250 in the precious eight days.
Silver coins dropped by Rs 1,000 to Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.