Tracking weak trend overseas and low demand from jewellers, gold extended its slide for the third straight day as prices dropped by another Rs. 25 to Rs. 27,325 per 10 grams at the bullion market on Thursday.
Silver followed suit, which traded lower by Rs. 260 to Rs. 38,540 per kg. Sentiment remained weak, largely in line with a weakening trend overseas where gold held at a two-week low as prospects for an increase in U.S. interest rates boosted the dollar, curbing demand for the metal as an alternative asset, traders reasoned.
In Singapore, which normally sets the price trend on the domestic front, the metal traded a tad lower at $1,187.36 an ounce from $1,188.09 on Wednesday. Silver too fell 0.2 per cent to $16.67 an ounce. Besides, slack demand from jewellers due to the off-wedding season put pressure, they said. In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs. 25 each at Rs. 27,325 and Rs. 27,175 per 10 gram, respectively. It had lost Rs. 125 in the past two days.
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The sovereign also eased Rs. 100 to Rs. 23,700 per piece of 8 grams. In line with the overall trend, silver ready moved down by Rs. 260 to Rs. 38,540 per kg and weekly-based delivery Rs. 280 to Rs. 38,295 per kg. Silver coins of 100 pieces, however, continued to be traded at last level of Rs. 56,000 for buying and Rs. 57,000 for selling.