Falling for the second day in a row, gold prices on Wednesday dropped by Rs. 100 to an over two-week low of Rs. 27,350 per ten grams at the bullion market here. Silver also eased by Rs. 50 to Rs. 38,800 per kg due to lack of buying support from industrial units.
Traders said weakening global trend where gold slipped to near two-week low as the dollar strengthened amid speculation that the Federal Reserve will raise U.S. interest rates this year, mainly kept pressure on domestic prices.
Gold in Singapore, which normally determines price trend on the domestic front, fell 0.3 per cent to $1,184.37 an ounce, the lowest level since May 12.
In addition, subdued demand from jewellers due to the off-wedding season also dampened the sentiment. In the national capital, gold of 99.9 and 99.5 per cent purity dropped by Rs. 100 each to Rs. 27,350 and Rs. 27,200 per ten gram respectively, a level last seen on May 6. The prices had fallen by Rs. 25 on Tuesday.
Sovereign, however, continued to be traded at last level of Rs. 23,800 per piece of eight gram. In a similar fashion, silver ready shed another Rs. 50 at Rs. 38,800 per kg and weekly-based delivery traded lower by Rs. 415 to Rs. 38,575 per kg. On the other hand, silver coins maintained a steady trend at Rs. 56,000 for buying and Rs. 57,000 for selling of 100 pieces.
