Local gold ends static, silver dips

Domestic gold demand was moderate to strong on Monday amid softer prices and dealers said orders would continue flowing in as long as prices remain in a range or see gradual rises or falls.

Standard gold and pure gold prices ended unchanged over their previous close, while silver .999 dropped by Rs 100 to close at Rs 18,055 per kg against its previous close of Rs 18,155.

Standard gold 99.50 open today Rs 8885 and closed at Rs 8885 per 10 gram, while pure gold 99.90 opened lower at Rs 8930 and closed at Rs 8940 per 10 gram.

After hitting an all-time high of Rs 10665 on May 12 2006 this year, the yellow metal has dropped by nearly 16.69 per cent at today's close, while silver prices are down by 21.33 per cent.

Local prices had recouped some losses after demand picked up nearly two weeks ago, but dealers said an overall bearishness and prices below the key Rs 9,000 per 10 grams mark had kept the buyers' interest alive.

"The demand is strong... unless there are sudden spikes, buyers won't be deterred," said a dealer in a large private bank.

The dealer said supply constraints continued to dog the market with traders in many parts of the country being reconciled to delayed shipments.

Next week's Dussera festival may keep retail sales strong enough to keep the supply chain moving ahead at a good pace, said traders.