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Gold, silver extend losses on selling and global cues

Metals gold and silver extended their losses on the second day after it fell by Rs 95 and Rs 170 respectively. Gold was priced at Rs 26,625 per 10 grams whereas silver was priced at Rs 40,430 per kg.

July 08, 2013 / 10:14 AM IST

Both the precious metals, gold and silver, extended losses for the second day in the national capital today on sustained selling by stockists in tandem with a weakening global trend. While gold fell by Rs 95 to Rs 26,625 per 10 grams, silver lost Rs 170 to Rs 40,430 per kg on poor offtake by industrial units and coin makers.

The sentiment remained weak after gold fell in global markets as the dollar surged to three years high after US payrolls rose more than forecast in June, fueling speculation that the Federal Reserve will scale back stimulus, traders said.

Also read: Expect Gold, Silver trade lower: Angel Commodities

Gold in New York, which normally sets the price trend on the domestic front, slumped 3.1 percent to USD 1,212.70 an ounce after touching USD 1,206.90, the lowest since June 28.

Silver also tumbled 4.9 percent to USD 18.73 an ounce, the biggest decline since June 20. In addition, investors shifting their funds from weakening bullion to firming equity market for quick gains, also dampened the sentiment in precious metals trade.

On the domestic front, gold of 99.9 and 99.5 percent purity fell further by Rs 95 each to Rs 26,625 and Rs 26,425 per 10 grams, respectively. It had lost Rs 110 yesterday. Sovereigns remained stable at Rs 24,000 in scattered deals.

Similarly, silver ready lost another Rs 170 to Rs 40,430 per kg, while weekly-based delivery received by Rs 365 to Rs 40,270 per kg, respectively. The white metal had lost Rs 800 in the previous session.

On the other hand, silver coins held steady at Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.

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