Gold, silver continues to slide on weak global cues

Both the precious metals, gold and silver continued to slide for the third straight day on increased selling by stockists in tandem with a weak trend in overseas markets. 

While silver dropped by Rs 500 to Rs 44,000 per kg, gold by Rs 145 to Rs 20,535 per 10 grams. 

Selling pressure gathered momentum as gold plunged in global markets as regaining confidence that European Union leaders might stabilise the bloc's economy, reducing the appeal of the metal as a haven.  

Gold in global markets, which normally set a trend on the domestic front here, tumbled by $12.20 to $1361.80 an ounce.

Besides, retail customers refraining to buy precious metals at existing higher levels, further influenced the market sentiment.

On the domestic front, silver ready remained under pressure and dropped further by Rs 500 to Rs 44,000 per kg and weekly-based delivery by Rs 505 to Rs 43,815 per kg.

Silver coins declined by Rs 200 to Rs 50,300 for buying and Rs 50,400 for selling of 100 pieces.  

In a similar fashion, gold of 99.9 and 99.5 per cent purity fell by Rs 145 each to Rs 20,535 and Rs 20,415 per 10 grams, respectively. Sovereign followed suit and lost Rs 50 to Rs 16,900 per piece of eight grams.