Gold, silver extend losses on weak global cues, low demand

Gold dropped for the second day with prices falling further by Rs 120 to Rs 28,330 per ten gram in the national capital on Tuesday, tracking a weak trend overseas amid slackened demand.

Silver also lost Rs 350 to Rs 45,250 per kg on lack of buying support from industrial units and coin makers.

Traders said besides stockists selling, a weakening global trend where gold posted its biggest decline in almost seven months as Portuguese banking concerns eased and equities gained, diminishing safe-haven demand.

Gold in New York, which normally sets price trend on the domestic front, fell 2.3 per cent to $1,306.70 an ounce, the biggest loss since December 19 and silver by 2.5 per cent, the most since April 15, to $20.91

an ounce in yesterday's trade.

Further, slackened demand from jewellers and retailers also weighed on gold prices, they said.

In Delhi, gold of 99.9 and 99.5 per cent purity dropped by Rs 120 each to Rs 28,330 and Rs 28,130 per ten gram respectively.

It had gained Rs 280 on Monday.

Sovereign, however, held steady at Rs 24,900 per piece of eight gram in limited deals.

In a similar fashion, silver ready traded Rs 350 lower at Rs 45,250 per kg and weekly-based delivery by Rs 515 to Rs 45,075 per kg. The white metal had lost Rs 400 in last trade.

On the other hand, silver coins continued to asked at last level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.