Silver crashes to six weeks low, gold also declines

Mumbai, Aug 17 (UNI) Both the precious metals today declined with Silver plunging by Rs 660 to a six weeks low of Rs 16,945 per kg and Gold was down by Rs 105 to close at Rs 8,840 per ten gm on sustained heavy offloading by stock-holders coupled with bearish advice from global markets, traders at the Bombay Bullion Exchange said.

Silver (fineness) .999 fell below the Rs 17,600 barrier. Resuming at Rs 16,725 per kg on thin demand from industrial users, it drifted lower and closed at a six weeks low of Rs 16,945 per kg.

The white metal value had decreased by over Rs 900 in the last four sessions.

Traders attributed the bearish phase to sustained heavy offers by stockists in view of weaker advice from abroad and upcountry markets.

In London and other global centres, silver was down at USD 11.65/11.70 per troy ounce as compared to its last close of USD 12.38/12.40. Asian market also ruled weaker on persistent selling pressure by global operators, traders pointed out.

Spot standard gold (99.5) and pure gold (99.9) also opened low at Rs 8,775 and Rs 8,825 per ten gm respectively on lack of fresh buying support from ornament makers.

Later, the yellow metal drifted again lower to close at Rs 8,790 per ten gm for standard mint gold and for pure gold at 8,840 per ten gms from their last close. Value of yellow metal slumped by Rs 105 each from their last close.

Gold has come down steeply by over Rs 200 in last four days.

Traders said there was lack of fresh ornament makers demand.

Sellers were keen to offer their stocks because of weaker trend in yellow metal prices in the international markets.

In London and other Asian countries, gold was quoted down between USD 652.25 and 656.00 per troy ounce as compared to USD 664.00 and 667.50 per troy ounce on the previous day.

Following are the spot silver and gold closing prices: Silver (per kg) .999 grade : Rs 16,945 (17,605) Gold (per 10 gm): Standard mint 99.5 purity : Rs 8,790 (8,895) Pure gold 99.9 purity : Rs 8,840 (8,945) UNI