Gold, silver fall steeply on weak global cues, sluggish demand

New Delhi, Jan 21 (PTI) Both precious metals, gold andsilver, witnessed major losses today, falling by Rs 230 to Rs20,400 per 10 grams and Rs 1,540 to Rs 42,850 per kg,respectively, due to heavy sell off by stockists on weakglobal cues, amid sluggish demand.

Market analysts said sudden spurt in the metals'' pricesoverseas triggered the fall in prices here.

Gold in global markets, which normally sets a price trendon the domestic front, dropped by USD 24.90 to USD 1345.60 anounce and silver lost 4.52 per cent to USD 27.47 an ounce inNew York last night.

On the domestic front, silver ready remained under heavyselling pressure from stockists and plunged by Rs 1,540 to Rs42,850 per kg and weekly-based delivery by Rs 1,660 to Rs42,445 per kg.

Silver coins followed suit and plummeted by Rs 1,900 toRs 48,500 for buying and Rs 48,600 for selling of 100 pieces.

In line with the general weakening trend, gold of 99.9and 99.5 per cent purity tumbled by Rs 230 each to Rs 20,400and Rs 20,280 per 10 grams, respectively. Sovereign followedsuit and fell by Rs 50 to Rs 16,850 per piece of eight grams.