Gold declines by Rs 65, silver gains Rs 100

A divergent trend emerged on the bullion market today as gold prices fell by Rs 65 to Rs 20,340 per 10 grams largely in line with a weak global trend, while silver strengthened by Rs 100 to Rs 44,900 per kg on increased buying by industrial units.  

The gold sentiment turned bearish after the precious metal in Asia declined on speculations of global economic recovery, curbing demand for the precious metal as an alternative investment option.

Gold in global market which normally sets the price trend on the domestic front here, fell by 0.2 per cent to $1,346.32 an ounce.

In the national capital, gold of 99.99 and 99.5 per cent purity traded Rs 65 each lower at Rs 20,340 and Rs 20,220 per 10 grams respectively, while sovereign remained steady at Rs 16,800 per piece of eight grams.

On the other hand, silver ready continued to rise and gained Rs 100 more to Rs 44,900 per kg and weekly-based delivery by Rs 45 to Rs 44,575 per kg on the back of industrial demand.

Silver coin followed suit and traded higher by Rs 100 to Rs 48,800 for buying and Rs 48,900 for selling of 100 pieces.