Gold extends losses on sluggish demand, appreciating rupee

Gold extends losses on sluggish demand, appreciating rupee Gold extended losses for the third day by falling Rs 270 to Rs 29,580 per ten grams in the national capital today on reduced offtake and firming rupee against the dollar.

Silver also maintained a downward trend for the eight consecutive day by losing Rs 250 to Rs 43,950 per kg on sustained selling.

Traders said appreciating rupee against the American currency made imports of dollar denominated precious metal cheaper, which mainly kept pressure on bullion prices.

They said sluggish demand on end of the marriage and festival season and investors shifting their funds from bullion to surging equity markets further influenced the sentiment.

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 270 each to Rs 29,580 and Rs 29,380 per 10 grams, respectively. It had lost Rs 500 in last two days.

Sovereign followed suit and declined by Rs 100 to Rs 25,000 per piece of eight grams.

Silver ready dropped by Rs 250 to Rs 43,950 per kg and weekly-based delivery by Rs 220 to Rs 43,570 per kg. The white metal had lost Rs 3,000 in the previous seven sessions.

Silver coins also lost Rs 1,000 to Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces.

Image: A gold necklace; Photograph: Reuters