Gold drops after record-breaking run; silver also slips

Mumbai, Aug 29: Snapping a four-session record breaking journey,

prices retreated from their historic peaks at the domestic bullion market here today on emergence of fresh selling from stockists and retail investors.

The yellow metal had scaled to a new lifetime high of Rs 30,920 per 10 gm yesterday. Silver, too, witnessed modest unwinding by speculators after an uninterrupted seven-session rally amid reduced industrial demand.

Standard gold (99.5 purity) shed Rs 100 to end at Rs 30,800 per 10 gm from Monday's closing level of Rs 30,920. Pure gold (99.9 purity) slipped by Rs 115 to finish at Rs 30,950 per 10 gm from Rs 31,065.

Silver ready (.999 fineness) declined by Rs 380 per kg to conclude at Rs 58,645 from Rs 59,025 previously.

On the global front, gold traded almost flat after easing from the previous session’s four-and-a-half month high as investors turned cautious ahead of Central bankers' meet at the weekend.

The recent rally in the precious metals was mainly driven by hopes of strong stimulus measures by policymakers in the US, Europe and China to prop up faltering growth.

In London, spot gold was steady at USD 1,663.11 an ounce in early trade, while spot silver was bid up at USD 30.83 an ounce.

PTI