Gold falls for third day, down Rs 45; silver steady

Gold prices fell for the third trading day in a row by losing Rs 45 to Rs 29,605 per 10 grams in the bullion market here on Monday due to sluggish demand amid a weak trend in overseas markets.

Silver held steady at Rs 52,400 per kg on restricted buying activity. However, silver coins plunged by Rs 2,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.

Traders said sentiment in gold remained bearish as the metal declined in global markets on speculation that Europe’s debt crisis might strengthen the dollar, curbing demand for the metal as an alternative investment.

In London, gold declined by 0.2 per cent to $1,586.35 an ounce, while silver fell by 0.4 per cent to $ 27.20 an ounce.

Besides, fall in domestic demand at prevailing higher levels further fuelled the downtrend in gold.

Gold of 99.9 and 99.5 per cent purity fell further by Rs 45 each to Rs 29,605 and Rs 29,405 per 10 grams.

It had lost Rs 70 in last two sessions.

However, sovereign found scattered buying support from retailers and rose by Rs 100 to Rs 24,400 per piece of eight grams.

Silver ready remained steady at Rs 52,400 per kg, while weekly-based delivery declined by Rs 160 to Rs 52,590 per kg on lack of buying support.