Precious metals decline further on bullish advice

Mumbai, Jan 22: Spot silver and gold edged down further on lack of fresh demand along with weak global advice in the opening session, as silver tumbled down by Rs 385 per kg and gold by Rs 145 per ten gm on poor buying support, dealers at the Bombay Bullion Market said.

Reports from Tokyo Market stated that Gold fell to a fresh two-week low today, as euro's weakness against the dollar led to fall in energy prices and plunged in global equity prices sparking profit taking in the metal. Japanese shares fell by more than 4 per cent and Chinese stocks by more than 5 per cent, prompting investors to pull out from gold and other commodities.

''When heavy sell-offs in global stocks are happening, it's tough to buy gold,'' said Hiroyuki Kikukawa, analyst at IDO Securities in Tokyo.

Spot gold was trading at USD 862.50/863.50 an ounce, down from USD 864.30/865.00 in late European trade yesterday.

Following are the opening rates of spot silver and gold in the Bombay Bullion Market today: Silver (per kg) 999 fineness grade : Rs 20,085 Gold (per 10 gm) Gold 99.5 purity standard mint : Rs 11,045 Gold 99.9 purity pure gold : Rs 11,095.

UNI