Gold extends losses; down Rs 100 on global cues, low demand

Falling for the second day in a row, gold prices today dropped by Rs 100 to over two-week low of Rs 27,350 per ten grams at the bullion market here.      

Silver also eased by Rs 50 to Rs 38,800 per kg because of lack of buying support from industrial units.      

Traders said weakening global trend where gold slipped to near two-week low as the dollar strengthened amid speculation that the Federal Reserve will raise US interest rates this year, mainly kept pressure on domestic prices.

Gold in Singapore, which normally determines price trend on the domestic front, fell 0.3 per cent to $1,184.37 an ounce, the lowest level since May 12.

In addition, subdued demand from jewellers due to off-wedding season also dampened the sentiment.

In the national capital, gold of 99.9 and 99.5 per cent purity dropped by Rs 100 each to Rs 27,350 and Rs 27,200 per ten gram respectively, a level last seen on May 6. The prices had fallen by Rs 25 yesterday.

Sovereign, however, continued to be traded at last level of Rs 23,800 per piece of eight gram.

In a similar fashion, silver ready shed another Rs 50 at Rs 38,800 per kg and weekly-based delivery traded lower by Rs 415 to Rs 38,575 per kg.

On the other hand, silver coins maintained a steady trend at Rs 56,000 for buying and Rsa 57,000 for selling of 100 pieces.