Gold falls to 20 month low on sustained selling

Falling for the fourth straight session, gold prices today fell to its lowest level in 20-month by losing Rs 90 on sustained selling by stockist against restricted buying.
After dropping Rs 3,160 in last three sessions, gold fell further by Rs 90 to Rs 26,350 per ten grams, its lowest level since August 17, 2011.
Silver followed suit and surrendered Rs 425 to Rs 45,700 per kg on reduced offtake by industrial units and coin makers. It had recorded a fall of Rs 6,475 in previous three sessions.
Both the precious metals remained in bear grip this week following a steep fall in prices in international markets on speculations of selling by struggling Cyprus central bank.

The dollar-denominated precious metals also fell on strengthening rupee against the US currency and government slashing tariff value of gold and silver, taking into account weak global trend.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 90 each to Rs 26,350 and Rs 26,150 per ten grams.

However, sovereign found some low level buying and recovered by Rs 200 to Rs 24,000 per piece of eight gram.
In line with a general weak trend, silver ready declined further by Rs 425 to Rs 45,700 per kg and weekly-based delivery by Rs 690 to Rs 43,460 per kg.

Meanwhile, silver coins maintained steady trend at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.