Gold, silver extend losses on reduced offtake, global cues

Both the precious metals, gold and silver extended losses for the second straight day in the national capital today due to sustained selling by stockists in tandem with a weak trend in Asian region.

While gold declined Rs 20 to Rs 20,660 per 10 grams in continuation to a loss of Rs 320 in the previous session, silver lost by Rs 100 to Rs 45,300 per kg, after falling Rs 1,440 yesterday.

Selling pressure gathered momentum as gold dropped for a fourth day in Asia, the worst fall in seven weeks, as US economic data signalled a fall in demand for the precious metal as a safe haven.

Gold in global markets, which normally sets the price trend on the domestic front here, fell 0.3 per cent to $1,374.10 an ounce in Asia.

Besides, a sluggish retail demand at existing higher levels further fuelled the downtrend.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined further by Rs 20 each to Rs 20,660 and Rs 20,540 per 10 grams, respectively. However, sovereign held steady at Rs 16,900 per piece of eight grams in limited deals.

In line with a general weakening trend, silver ready lost another Rs 100 to Rs 45,400 per kg. Silver weekly-based delivery shed Rs 60 to Rs 44,890 per kg.

Silver coins also traded lower by Rs 100 to Rs 50,300 for buying and Rs 50,400 for selling of 100 pieces.