Gold, silver retreat from record levels on weak global cues

Gold and silver fell from their record highs in the national capital today on reduced offtake at existing higher levels amid weak global cues.

Trading sentiment turned bearish as retailers and jewellers refrained from buying at existing record levels amid reports that the metal in overseas markets declined on weak dollar.

The demand for the precious metal eroded as concern that some European governments are struggling to finance themselves boosted the dollar.

Gold in global markets,which normally sets the price trend  on the domestic front here, lost 2.2 per cent to $1,378.30 an ounce and silver by 4.1 per cent to $26.58 an ounce.

Reports of rise in import of gold during the festival season in India, proved another dampener for the market.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 70 each to Rs 20,530 and Rs 20,430 per ten grams respectively. Gold had touched a record level of Rs 20,600 per ten grams in the previous session.

Sovereign remained stable at Rs 16,400 per piece of eight grams.

In line with a general weak trend, silver ready plunged by Rs 450 to Rs 40,350 per kg on poor offtake by industrial units. It had climbed to an all-time high of Rs 41,700 per kg on November 9.

Silver weekly-based delivery plunged by Rs 595 to Rs 40,000 per kg on lack of speculator's support.

Silver coins lost Rs 100 to Rs 43,800 for buying and Rs 43,900 for selling of 100 pieces.