Gold fell below the Rs 28,000 per 10 grams-level for the first time in six weeks in the national capital today, losing Rs 375 to Rs 27,765 per 10 grams on sustained selling amid reduced offtake at higher levels and a weakening global trend.
Falling for the fifth straight day, gold prices declined to levels last seen on November 3 as stockists offloaded their positions, taking cues from a steep fall in global markets and reduced demand at prevailing higher levels.
The precious metal has lost Rs 1,565 in the past five sessions. It had touched a record high of Rs 29,540 per 10 grams on December 8.
However, silver prices rose by Rs 500 to Rs 53,100 per kg on fresh buying by industrial units and jewellers.
Marketmen said sustained selling by stockists in tandem with a weakening global trend mainly pulled gold prices below the Rs 28,000 per 10 grams-mark.
Gold in global markets, which normally sets the price trend on the domestic front, fell by $5.90 to $1,570.60 an ounce in New York last night as investors refrained from fresh buying amid a deepening euro zone debt crisis.
In addition, the end of the marriage and festival season and lower demand from retail customers expecting a further correction in prices influenced the market sentiment to some extent.
On the domestic front, gold of 99.9% and 99.5% purity remained under selling pressure and plunged by Rs 375 each to Rs 27,765 and Rs 27,625 per 10 grams, respectively. However, sovereigns held steady at Rs 23,200 per piece of eight grams in limited deals.
On the other hand, silver ready found fresh buying support and recovered by Rs 500 to Rs 53,100 per kg and weekly-based delivery by Rs 400 to Rs 53,600 per kg. The metal had lost Rs 3,200 in the previous session.
Silver coins continued to be traded at around the previous level of Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.
