Gold extends fall on weak global cues, sluggish demand

However, silver strengthens by Rs 275 to Rs 35,575 per kg on higher offtake by industrial units, coin makers

Falling for the third straight day, gold prices today dropped by Rs 80 to Rs 26,730 at the bullion market largely in tandem with weakening trend in global markets amid low demand from jewellers.

However, silver strengthened by Rs 275 to Rs 35,575 per kg on increased offtake by industrial units and coin makers.

Bullion merchants said a weak trend overseas after the European Central Bank signalled it could increase stimulus, which boosted the dollar and reduced demand for a safe haven, put pressure on the precious metal prices here.

Globally, gold fell 0.08 per cent to $1,124.10 an ounce in Singapore.

Besides, subdued demand from jewellers and retailers at domestic spot market dampened sentiment, they said.

The precious metal lost Rs 250 in last two days.

In the national capital, gold of 99.9 and 99.5 per cent purity fell further by Rs 80 each to Rs 26,730 and Rs 26,580 per 10 grams, respectively.

Sovereign also weakened by Rs 50 to Rs 22,300 per piece of eight grams.

On the other hand, silver ready advanced by Rs 275 to Rs 35,575 per kg and weekly-based delivery by Rs 255 to Rs 34,930 per kg.

Silver coins continued to be traded at last level of Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.