Gold, silver at multi-year lows on overseas cues
NEW DELHI: Gold and silver prices slumped to their multi-year lows to trade at Rs 25,800 per 10 grams and Rs 34,900 per kg, respectively in the national capital today amid weak cues from global markets as strengthening dollar curbed demand for the precious metals.
In addition, absence of buying by jewellers and retailers on hopes that gold may see further slide in its prices in coming days, dampened sentiments.
Bullion merchants said besides a weak trend in the global market where gold fell to its lowest level since April 2010 as surging dollar eroded demand for safe-haven, considerable fall in demand from jewellers and retailers on hopes of further correction in prices, weighed on the precious metal.
Gold in Singapore, which normally determines price trend on the domestic front, lost 0.90 per cent to USD 1,132.16 an ounce, the lowest since April 2010 and silver dropped by 2.3 per cent to USD 15.06 an ounce, the lowest since February 2010.
In Delhi, gold of 99.9 and 99.5 per cent purity dropped by Rs 100 each to trade at Rs 25,800 and Rs 25,600 per 10 grams, respectively, a level last seen in August 2011.
Meanwhile, gold prices have declined by a whopping Rs 2,000 per 10 grams since Diwali on October 23.
Sovereign, however, held steady at Rs 23,600 per piece of eight grams on scattered support.
In line with an overall weak trend, silver ready dipped below the Rs 35,000-mark for the first time since October 2010 to close down by Rs 150 at Rs 34,900 per kg.
Silver weekly-based delivery dipped by Rs 330 to Rs 34,400 per kg.
Silver coins, however, recovered by Rs 2,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.