Both gold and silver prices fell in the bullion market on Thursday on reduced offtake by stockists at existing higher levels amid a weak global trend.
While gold fell by Rs. 175 to Rs 28,290 per 10 grams, silver lost Rs. 800 to Rs. 64,200 per kg.
Dealers said that the trading sentiment turned bearish as gold declined in the global markets after German and French leaders expressed support for Greece to remain in the eurozone amid speculations that China may help the region’s most indebted nations.
Gold in global markets, which normally sets the price trend on the domestic front, dropped by 0.9 per cent to $1,804.02 an ounce and silver by 0.4 per cent to $40.52 an ounce.
Reduced offtake by stockists at prevailing higher levels and a weak trend in global markets mainly led to the fall in the precious metals, they added.
Retailers refrained from purchasing the precious metals due to the on-going inauspicious ‘shradh’ fortnight, which also dampened the trading sentiment, they said.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs. 175 each to Rs. 28,290 and Rs. 28,140 per 10, grams. It had gained Rs. 225 on Wednesday.
However, sovereign continued to be asked around previous level of Rs. 22,700 per piece of eight grams.
In a similar fashion, silver ready moved down by Rs. 800 to Rs 64,200 per kg and weekly-based delivery by Rs. 760 to Rs. 64,600 per kg.
Silver coins also lost Rs. 2,000 to Rs. 71,000 for buying and Rs. 72,000 for selling of 100 pieces.