Gold suffers more losses, slides Rs 170 on global leads

Gold extended its slump for the third day and lost another Rs 170 to Rs 30,320 per 10 grams in the bullion market today amid a weakening global trend and slack demand from jewellers.

Silver cracked below the Rs 42,000-mark by tumbling Rs 920 to Rs 41,930 per kg on poor offtake by industrial units and coin makers.

Sentiment was downbeat, largely in keeping with a weak global trend where gold is on course for the biggest weekly loss in two years to trade at four-month lows on expectations that the Federal Reserve is close to raising US interest rates, boosting the dollar and sapping the precious metal's safe haven appeal.

Globally, gold fell by 0.06 per cent to USD 1,254.40 an ounce, the lowest level since June 7, and silver by 0.09 per cent to USD 17.27 an ounce in Singapore.

Furthermore, easing demand from jewellers and retailers in the domestic bullion market weighed.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 170 each to Rs 30,320 and Rs 30,170 per 10 grams, respectively. The precious metal had lost Rs 760 in the past two days.

Sovereign, however, held steady at Rs 24,400 per piece of eight grams.

Tracking gold, silver ready plunged by Rs 920 to Rs 41,930 per kg and weekly-based delivery by Rs 970 to Rs 41,575 per kg.

Silver coins, too, plummeted by Rs 2,000 to Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.