Gold falls further by Rs 170, silver adds Rs 500

New Delhi, Oct 20: A divergent trend developed on the bullion market here today (Oct 20) as gold extended losses and declines by Rs 170 to Rs 26,820 per 10 grams on sustained selling, while silver recovered by Rs 500 to Rs 53,300 per kg on scattered buying.

Market experts said trading sentiment in gold remained bearish as retail customers and jewellery makers refrained from buying at existing higher levels and investors shifted their funds from bullion to rising equities.

In addition, a weakening global trend after the precious metal dropped USD 9.28 to USD 1,648.57 an ounce in London, following reports that France and Germany are nearing an accord to ease eurozone debt crisis, reduced the demand for the metal as a protection of wealth.

Back home, gold of 99.9 and 99.5 per cent purity fell further by Rs 170 each to Rs 26,820 and Rs 26,680 per 10 grams, respectively. The metal had lost Rs 200 yesterday.

Sovereigns also declined by Rs 50 to Rs 21,950 per piece of eight grams. On the other hand, silver ready recovered by Rs 500 to Rs 53,300 per kg, after losing Rs 1,000 in the previous session.

Silver weekly-based delivery also gained Rs 400 to Rs 52,750 per kg. Silver coins held steady at Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.

PTI