Gold price falls for third day on global cues, low demand

MUMBAI-INDIA  (Sept 23)  Both gold and silver fell for the third straight session in the national capital on Monday on lower demand against sustained selling in line with a weak global trend.

While gold fell by Rs 250 to Rs 30,250 per 10 gm, silver lost Rs 475 to Rs 49,025 per kg on reduced offtake by jewellers and industrial units.

Traders said sentiment remained bearish on fall in demand following ongoing Shradh, an inauspicious fortnight in Hindu mythology for making any fresh purchases.

They said a weakening global trend where gold extended the biggest drop in more than a week as investors weighed the outlook for stimulus, further influenced the trend.

Gold in Singapore, which normally sets price trend at the domestic front, dropped 0.9 per cent to $1,313.69 per troy ounce and silver by 1.4 per cent to $21.48 per troy ounce.

At the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 250 each to Rs 30,250 and Rs 30,050 per 10 gm, respectively. The yellow metal had lost Rs 310 in the previous two sessions. Sovereign shed Rs 100 to Rs 25,000 per piece of eight gram.

Silver ready dropped by Rs 475 to Rs 49,025 per kg and weekly-based delivery by Rs 575 to Rs 48,925 per kg. The white metal had lost Rs 1,700 in last two sessions.

Silver coins, however, held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces in limited deals.

Meanwhile, gold prices weakened further to retrace Rs 29,790 per 10 gm level at the Mumbai bullion market on Monday on steady selling by stockists and traders amid lack of local buying interest as well as bearish global cues.

Silver also fell nearly six-week low to revisit Rs 49,000 per kg level owing to hectic speculative selloff.

Standard gold of 99.5 per cent purity slid by Rs 210 to end at Rs 29,790 per 10 gm from last Saturday’s closing level of Rs 30,000.

Pure gold of 99.9 per cent purity also dipped by a similar margin to close at Rs 29,935 per 10 gm from Rs 30,145.

Silver ready (.999 fineness) slumped by Rs 510 to conclude at Rs 49,765 per kg as against Rs 50,275 last weekend.

Overseas, gold declined, extending its previous session sharp selloff weighed by uncertainty over US monetary policy and subdued buying from China.

In London, spot gold was bid lower at $1,319.76 in early trade and silver was bid down at $21.60.