Gold, silver slide on global cues, fall in demand

NEW DEKHI: Gold prices dropped by Rs 820 to close at Rs 33,770 per ten grams during the week at the bullion market on account of fall in demand from local jewellers and subdued global trend. Silver rates also saw a decline during the week and slipped below the Rs 40,000 mark on poor offtake by industrial units and coin makers.

Sentiment turned downbeat in sync with the weak trend overseas on a stronger dollar which soared to a 10-week high and rising US treasury yields, boosted by better-than-expected US GDP data for the fourth quarter, released during the week.

Higher global stocks too weighed on the domestic bullion market sentiments.

Globally, spot gold ended the week lower at $1,293.90 an ounce, its lowest since January 28 and silver at $15.29 an ounce in New York.

Moreover, a considerable fall in demand from local jewellers and retailers at domestic spot market too put pressure on the precious metal prices, they said.

In the national capital, gold of 99.9 per cent purity, after a steady opening at Rs 34,590 per ten grams, turned weak in tandem with subdued overseas leads and fading demand from local jewellers and slipped gradually to end the week with a steep fall of Rs 820 at Rs 33,770.

Gold 99.5 per cent purity followed suit and retreated by Rs 840 to Rs 32,600 per ten gram.

Sovereign, too turned somewhat weak and shed Rs 100 at Rs 26,500 per piece of 8 grams.

Tracking overall trends, silver ready remained in the negative zone for the better part of the week and closed with a fall of Rs 1,550 to end the week at Rs 39,950 per kg and weekly-based delivery by Rs 1,968 to Rs 38,300 per kg.

Silver coins dropped by Rs 2,000 each to Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.