Gold extends losses; down Rs 100 on global cues, low demand

Falling for the second day, gold prices drifted by Rs 100 to Rs 25,130 per 10 gram at the bullion market today, tracking a weakening global trend amid subdued demand from jewellers. Silver followed suit and lost another Rs 450 at Rs 33,750 per kg. Traders said weakening global trend amid speculation that the Federal Reserve will raise interest rates as early as September kept pressure on the precious metal.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 percent to USD 1,083.75 an ounce and silver by 0.2 percent to USD 14.49 an ounce. Besides, sluggish demand from jewellers and retailers dampened the sentiment, they said. Strengthening rupee against the dollar, making imports cheaper also influenced the sentiments to some extent, they added.

At the forex market, rupee was trading 20 paise higher at Rs 63.84 (intra-day). In the national capital, gold of 99.9 and 99.5 percent purity plunged by Rs 100 each to Rs 25,130 and Rs 24,980 per ten grams respectively. It had lost Rs 70 yesterday.

Sovereign, however, continued to be traded at last level of Rs 22,200 per piece of eight gram. Following gold, silver ready dipped below the Rs 34,000- mark by falling Rs 450 to Rs 33,750 per kg. Silver weekly- based delivery traded lower by Rs 440 Rs 33,460 per kg.

On the other hand, silver coins held steady at Rs 48,000 for buying and Rs 49,000 for selling 100 pieces.