Gold declines on global cues, silver slumps to one-month low

Gold prices declined at the bullion market here today on selling by stockists as well as subdued offtake from jewellery makers amidst bearish international trend.

Silver also plunged to settle below the Rs 45,000 per kg level on continued speculative sell-off and lower industrial support.

Standard gold (99.5 per cent purity) fell by Rs 80 per 10 grams to close at Rs 20,265 from overnight closing level of Rs 20,345.

Pure gold (99.9 per cent purity) also dipped by a similar margin to end at Rs 20,365 per 10 grams as against Rs 20,445 previously.

Silver ready (.999 fineness) tanked by Rs 675 per kg to finish at Rs 44,960, a one month low, from Thursday's closing level of Rs 45,635.

In Europe, gold fell after Chinese central bank raised the interest rate.     Spot gold was bid at $1,368.45 an ounce in early trade as against $1,372.75 late in New York yesterday.

US gold futures for February delivery also lost $18.80 an ounce to $1,368.20. Spot silver was bid at $28.60 an ounce as against $28.67.