This Article is From Sep 12, 2014

Gold Falls to Three-Month Low of Rs 27,415 on Global Cues, Sluggish Demand

Gold Falls to Three-Month Low of Rs 27,415 on Global Cues, Sluggish Demand

New Delhi: Gold prices fell further by Rs 195 to close at a fresh three-month low of Rs 27,415 per 10 grams in the national capital on Friday on continued selling by stockists, driven by weakening global trend.

Silver remained under selling pressure and lost another Rs 600 to Rs 41,300 per kg on reduced offtake by industrial units and coin makers.

Sentiment remained weak after gold dropped to a seven-month low and silver slumped to the lowest since June 2013 in global markets as speculation that US borrowing costs will rise sooner-than-expected strengthened the dollar, eroding demand for precious metals as alternative investment, according to traders.

Gold in Singapore, which normally sets price trend on the domestic front, fell 0.7 per cent to $1,232.33 an ounce, the lowest since January 23, and silver 1.3 per cent to $18.46 an ounce - the lowest since June 28, 2013.

Besides, fading domestic demand due to ongoing 'Sharad' days - an inauspicious fortnight in Hindu mythology for making new purchases influenced the sentiment to some extent, they said.

In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 195 each to Rs 27,415 and Rs 27,215 per ten gram respectively, a level last seen on June 13. It had lost Rs 190 on Thursday.

Sovereign followed suit and declined by Rs 100 to Rs 24,400 per piece of 8 grams.

In a similar fashion, silver ready dropped by Rs 600 to Rs 41,300 per kg and weekly-based delivery by Rs 690 to Rs 41,200 per kg. The white metal had lost Rs 270 in last trade.

Silver coins nosedived by Rs 3,000 to Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces on poor demand.