Gold drops Rs 165 on global cues, subdued demand

New Delhi, Feb 14: Gold extended losses for the third day on Tuesday losing Rs 165 to trade at Rs 28,165 per ten grams in bullion market here due to sustained selling by stockists amid a weak trend in global markets.

Silver also declined by Rs 150 to Rs 56,150 per kg on reduced offtake by industrial units and coin makers. Trading sentiment turned bearish as gold fell in global markets after Moody’s Investors Service cut the ratings of six European nations, strengthening the dollar and curbing demand for alternative investments.

Gold in global markets, which normally set price trend on the domestic front, dropped 0.4 per cent to 1,714.78 dollar an ounce and silver by 0.8 per cent to 33.46 dollar an ounce in Singapore. In additions, subdued demand in domestic markets at prevailing higher levels further fuelled the downtrend in precious metals.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 165 each to Rs 28,165 and Rs 28,025 per ten grams respectively. It had lost Rs 185 in the previous two sessions. Sovereign followed suit and declined by Rs 50 to Rs 23,400 per piece of eight gram.

In a similar fashion, silver ready declined by Rs 150 to Rs 56,150 per kg and weekly-based delivery by Rs 325 to Rs 56,510 per kg. Silver coins dropped by Rs 1,000 to Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.

PTI