Gold, silver dip on weaker advice from global markets

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Mumbai, Jan 1 (UNI) Values of gold and silver ended softer with gold declining by Rs 45 per ten gm to close at Rs 10,705 and the white metal declining by Rs 80 per kg to finish at Rs 19,480 per kg, mainly on sustained offloading by local dealers along with discouraging advice from global and upcountry markets, traders at the Bombay Bullion Association (BBA) said on the first day of trading in 2008 today.

Standard mint gold and pure gold resumed low at Rs 10,655 per ten gm and Rs 10,705 per ten gm due to thin seasonal demand from local dealers.

But later, both the prices drifted lower towards the end of the session and closed low at Rs 10,650 per ten gm for standard mint and Rs 10,705 per ten gm for pure gold.

Both the prices finally eased modestly by Rs 45 each as compared to their previous close on lack of demand at prevailing higher levels by local ornament makers.

However, silver (.999 fineness) variety quoted below Rs 19,500 barrier and closed negative at Rs 19,480 per kg after resuming low at Rs 19,510 per kg from its last close. Finally, the white metal plummeted by Rs 80 from its previous day's close.

Traders said there was sustained heavy selling pressure by stock-holders in view of sufficient stocks. Local buyers were cautious even at the current low level. There were negative unofficial reports from global markets that said spot gold quoted low at 833.10 an ounce compared to USD 843.20/844.40 on the previous day while silver eased to USD 14.76/14.83 an ounce from USD 14.88/14.92 on earlier day. This reflected in the downward trend in the domestic bullion market, traders pointed out.

Following were the spot silver and gold closing prices: Silver (per kg) .999 grade: Rs 19,480 (19,560) Gold (per 10 gm): Standard mint 99.5 purity: Rs 10,650 (10,695) Pure gold 99.9 purity: Rs 10,705 (10,745) UNI AR DB VKG1910

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