Gold prices fell further by Rs. 40 to Rs. 18,300 per ten grams in the national capital on Friday on sustained selling by stockists, triggered by a weakening global trend.
The trading sentiment remained bearish after gold dropped in global markets, heading for its biggest weekly loss since February, 2009, as some investors sold to cover losses in other markets and lock in gains after a rally to near record levels a week ago.
Marketmen said sustained selling by stockists in tandem with a weakening global trend mainly led to the fall in gold prices.
Domestic demand was sluggish as retail customers remained on the sidelines, waiting for a further correction in gold prices in coming days, which further dampened the trading sentiment to some extent, they said.
The price of gold in overseas markets, which normally sets the trend on the domestic front, fell by USD 16.05, or 1.4 per cent, to USD 1,166.30 an ounce. The metal has lost 4.7 per cent this week.
Standard gold and ornaments remained under selling pressure and declined by Rs. 40 each to Rs. 18,300 and Rs. 18,150 per ten grams respectively. They had lost Rs. 110 in the previous trading session. Sovereigns remained flat at around the previous level of Rs. 14,450 per piece of eight grams.
In line with the general weakening trend, silver ready dropped further by Rs. 250 to Rs. 28,700 per kg and weekly-based delivery by Rs. 245 to Rs. 28,485 per kg.
However, the price of silver coins held steady at Rs. 34,300 for buying and Rs. 34,400 for selling of 100 pieces.
Keywords: bullion rates