Gold losses mount, silver dips below Rs 38,000 per kg

Gold prices suffered more losses by falling Rs 200 to trade at Rs 29,750 per 10 grams today, mirroring a weak trend overseas amid slack demand from jewellers at the domestic market.

Silver ready dipped below the Rs 38,000-mark by plunging Rs 425 to Rs 37,700 per kg, due to reduced offtake by industrial units and coin makers.

Traders attributed the fall in the metal's prices to a weak trend overseas where gold is heading for the biggest weekly drop since May as investors anticipate higher US interest rates, and progress on tax reform buoys the dollar, eroding safe-haven appeal of the precious metal.

Meanwhile, gold for immediate delivery has slumped 2.5 per cent this week, the most since the five days ended May 5.

Globally, gold fell 1.27 per cent to USD 1,247.80 an ounce and silver by 1.41 per cent to USD 15.70 an ounce in New York yesterday.

In addition, a considerable fall in demand from jewellers and retailers at the domestic spot market put pressure on the prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 200 each to Rs 29,750 and Rs 29,600 per 10 grams, respectively. The precious metal had lost Rs 300 in the previous two days.

Sovereign, however, remained unchanged at Rs 24,400 per piece of eight grams in limited deals.

In sync with gold, silver ready dived Rs 425 to Rs 37,700 per kg and weekly-based delivery traded lower by Rs 355 at Rs 36,980 per kg.

Prices of silver coins, however, held steady at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.