Extending losses for the second day in a row, both gold and silver witnessed a decline in the national capital’s bullion market on sustained selling by stockists in tandem with a weak global trend.
While gold lost Rs. 305 at Rs. 27,185 per 10 grams, silver shed Rs. 300 to Rs. 62,500 per kg.
Traders said sustained selling by stockists in line with a weak trend overseas amid fall in demand at existing higher levels mainly pulled down both the precious metals.
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Gold in global markets, which normally sets the price trend on the domestic front, fell sharply by $40.60 an ounce to $1788.50 an ounce. Silver declined by 1.49 per cent to $40.88 an ounce.
Moreover, a bounce back in domestic equity markets also reduced the demand of the precious metals as an alternate investment option, they added.
On the domestic front, gold of 99.9 per cent and 99.5 per cent purity remained under selling pressure and plunged by Rs. 305 each to Rs. 27,185 and Rs. 27,035 per 10 grams, respectively. It had lost Rs. 600 on Monday. Sovereign shed Rs. 100 to Rs. 22,300 per piece of eight grams.
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Silver ready fell by Rs. 300 to Rs. 62,500 per kg and weekly-based delivery shed Rs. 1,005 to Rs. 61,025 per kg. The metal had lost Rs. 1,800 in the previous session.
Silver coins, however, ended flat at Rs. 69,500 for buying and Rs. 70,500 for selling of 100 pieces on scattered small buying support.