Gold extends losses on global cues, low demand

Gold prices shed Rs 20 to Rs 31,400 per ten grams at the bullion market today amid a weak trend overseas and easing demand from local jewellers.

Silver also remained under selling pressure and lost Rs 250 at Rs 40,350 per kg owing to reduced offtake by industrial units and coin makers.

Marketmen said, sentiment remained bearish in line with a subdued trend overseas where gold prices edged lower as the dollar firmed after last week's US inflation data supported the Federal Reserve's outlook for future interest rate hikes.

Globally, gold fell by 0.37 per cent to USD 1,247.80 an ounce and silver by 1.06 per cent to USD 15.92 an ounce in Singapore.

Besides, a fall in demand from local jewellers and retailers at the domestic spot markets, fuelled the downtrend.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 20 each to Rs 31,400 and Rs 31,250 per ten grams, respectively. The precious metal had lost Rs 230 in the previous two sessions.

Sovereign, however, remained steady at Rs 24,800 per piece of eight grams.

Tracking gold, silver ready dropped further by Rs 250 to Rs 40,350 per kg and weekly-based delivery by Rs 185 to Rs 39,040 per kg.

On the other hand, silver coins, however, continued to be traded at previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.