Silver, gold extend losses on weak global cues, poor demand

Both the precious metals, silver and gold, fell further Monday on sustained selling by stockists, triggered by a weakening global trend amid fall in demand at higher levels. While silver melted by Rs. 950 to Rs 51,600 per kg, gold lost Rs. 135 to Rs. 22,235 per 10 grams.

Silver coins followed suit and plunged by Rs. 3,000 to Rs. 55,000 for buying and Rs. 56,000 for selling of 100 pieces.

Trading sentiment remained bearish after gold declined by 0.3 per cent to $1,498.15 an ounce overseas, as weaker oil prices and a pledge by European Union leaders to avert a Greek default slashed the metal’s appeal as a safe haven.

The white metal also shed 1.8 per cent to $33.68.

Market analysts said absence of physical buying at prevailing high levels led to the decline in precious metals’ prices.

Also, some investors were seen shifting their funds from weakening bullion to rising equity which further dampened the sentiment.

On the domestic front, silver ready plunged by Rs. 950 to Rs. 51,600 per kg and weekly-based delivery declined by Rs. 1,145 to Rs. 50,700 per kg.

Similarly, gold of 99.9 and 99.5 per cent purity fell by Rs. 135 each to Rs. 22,235 and Rs. 22,115 per 10 grams, respectively.

Sovereigns followed suit and shed Rs. 50 to Rs. 18,600 per piece of eight grams.