Gold falls for third day on sustained selling, global cues

Gold prices fell for the third straight day by dropping Rs 255 to Rs 30,425 per 10 grams in the national capital on Thursday on sustained selling by stockists in tandem with weakening global trend.

Silver followed suit and lost Rs 540 at Rs 45,700 per kg on poor offtake by industrial units and coin makers.

Traders said the sentiment remained bearish on stockists selling and weakening global trend as Federal Reserve signalled a rise in interest rates while further reducing monetary stimulus, boosting the dollar and curbing demand for the metal.

Gold in Singapore, which normally sets the price trend on the domestic front, fell by 0.3 per cent to USD 1,325.66 an ounce and silver traded tad lower at $20.59 an ounce from 20.61

on Wednesday.

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 255 each to Rs 30,425 and Rs 30,225 per 10 grams, respectively.

It had lost Rs 150 in last two trade. Sovereigns also declined by Rs 100 at Rs 25,200 per piece of eight grams.

Similarly, silver ready dropped by Rs 540 to Rs 45,700 and weekly-based delivery by Rs 340 to Rs 45,500 per kg.

The white metal had lost Rs 960 in the previous two days.

Silver coins too tumbled by Rs 1,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.