Gold, silver dip by Rs 50 on weak trend overseas

Gold prices today fell by Rs 50 to Rs 20,770 per ten grams in the bullion market here today, extending yesterday's losses amid sluggish demand at prevailing higher levels, and a weakening global trend.  

Silver also weakened by Rs 50 to Rs 44,750 per kg on reduced offtake by industrial units.

Marketmen said subdued demand at existing higher levels and weakening trend in global markets last night, as stronger dollar reduced appeal for precious metals as an alternative investment, which led to a fall in the prices here.

Meanwhile, gold plunged $16.40 to $1,379.40 an ounce in New York last evening.

On the domestic front, the gold of 99.9 per cent and 99.5 per cent purity remained under pressure for the second straight day and lost Rs 50 each to Rs 20,770 and Rs 20,650 per ten grams, respectively. 

The metal had lost Rs 75 in the previous trading session.

Sovereign, on the other hand, continued to trade at previous level of Rs 16,800 per piece of eight gram in restricted buying.

Silver ready declined by Rs 50 to Rs 44,750, while weekly-based delivery by Rs 115 to Rs 44,225 per kg.

Silver coins traded Rs 100 lower at Rs 48,900 for buying and Rs 49,000 for selling of 100 pieces.