Gold, silver down on weak global cues, lower demand

New Delhi, Dec 6: Both the precious metals, gold and silver, tumbled today, on selling by stockists on sluggish demand at existing higher levels amid a steep fall overseas. While gold plunged by Rs 300 to Rs 29,140 per 10 grams, silver fell by Rs 760 to Rs 55,700 per kg.

The trading sentiment in the precious metals turned bearish, as gold declined in global markets following reports of easing euro-zone debt crisis, reducing demand of precious metals. Gold in global markets, which normally sets the price trend on the domestic front, fell 0.8 per cent to USD 1,709.07 an ounce and silver by 0.5 per cent to 31.98 dollar an ounce in Singapore.

In addition, sluggish local demand at prevailing higher levels further dampened the trading sentiment. On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 300 each to Rs 29,140 and Rs 29,000 per 10 grams, respectively, while sovereigns remained steady at Rs 23,350 per piece of eight grams.

In a similar fashion, silver ready dropped by Rs 760 to Rs 55,700 per kg and weekly-based delivery by Rs 960 to Rs 55,400 per kg. Silver coins continued to be asked around previous level of Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces.

PTI