Gold extends losses; falls Rs 200 on global cues, low demand

Silver remained under selling pressure and dropped by 450 to trade below the 34,000-mark at Rs 33,700 per kg

Tracking a weak overseas trend, gold prices tumbled by Rs 200 to Rs 25,350, extending its slide for the second straight day at the bullion market today.

Silver too remained under selling pressure and dropped by 450 to trade below the 34,000-mark at Rs 33,700 per kg.

Traders said sentiment remained bearish on a weak global trend where gold sank to the lowest level in over five years after Federal Reserve Chair Janet Yellen signaled the US economy looks strong enough for an interest rate hike this month.

This eroded demand for the precious metal, keeping pressure on the precious metals here.

Globally, gold lost 0.7% to $1,046.44 an ounce, the lowest since February 2010 and silver fell 1.2% to $13.84 an ounce, the lowest price since August 2009 in Singapore, while in London, the precious metal was down 0.39% at $1,049.10 an ounce.

Besides, muted demand from jewellers and retailers at domestic spot market on expectations further drop in prices in coming days dampened the sentiment, they said.

In the national capital, gold of 99.9 and 99.5% purity plunged by Rs 200 each to Rs 25,350 and Rs 25,200 per ten grams, respectively. It had lost Rs 150 yesterday.

Sovereign, however, held steady at Rs 22,200 per piece of eight grams.

Tracking gold, silver ready moved down by Rs 450 to Rs 33,700 per kg and weekly-based delivery by Rs 335 to Rs 33,240 per kg.

Silver coins also plummeted by Rs 1,000 to Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.