Silver falters, plunges Rs 450 on global cues; gold steady

Silver prices continued to fall for the third straight day, tumbling by Rs 450 to Rs 40,450 per kg at the bullion market today, in line with a weakening global trend amid reduced off-take by industrial units and coin makers at the domestic spot market.
However, gold ended flat in absence of any worth-while activity even as the precious metal weakened overseas.
Traders said a weak trend in the precious metals in global markets and poor off-take by industrial units and coin makers kept silver prices under pressure.
Globally, gold fell 0.5 per cent to USD 1,252.42 an ounce, the lowest level since April 2, and silver lost 1.48 per cent to USD 16.63 an ounce in Singapore as a strengthening dollar after the Federal Reserve hinted at a June interest rate hike dented appeal of the precious metals.

They said, however, lack of worth-while buying activity kept gold prices unchanged.
In the national capital, silver ready remained under selling pressure and declined further by Rs 450 to Rs 40,450 per kg and weekly-based delivery by Rs 775 to Rs 40,170.

Silver coins, however, held steady at Rs 68,000 for buying and Rs 69,000 for selling of 100 pieces in limited deals.
On the other hand, gold of 99.9 per cent and 99.5 per cent purity ruled steady at Rs 29,800 and Rs 29,650 per 10 grams, respectively. The metal had lost Rs 250 in the last two days.

Sovereign followed suit and traded at the previous level of Rs 23,200 per piece of 8 grams.