Gold eases on reduced buying; silver extends slide

Gold prices eased at the domestic bullion market today due to lack of retail buying interest and weak demand in view of ongoing 'Pitrupaksh'.

Silver also dropped further on consistent speculative unwinding coupled with subdued industrial off-take.

Standard gold (99.5 purity) shed Rs 50 per 10 gm to finish at Rs 31,125 from overnight closing level of Rs 31,175.

Pure gold (99.9 purity) moved down by Rs 45 per 10 gm to settle at Rs 31,265 from Rs 31,310.

Silver ready (.999 fineness) declined by Rs 175 per kg to end at Rs 61,325 from Friday's closing level of Rs 61,500.

"Subdued demand from jewellery makers as well as stockists at existing higher levels and poor retail buying due to ongoing 'Pitrupaksh' (a period considered inauspicious by Hindus) kept pressure on gold prices," traders said.

On the global front, gold witnessed week-end profit taking despite a weaker greenback and stronger-than-expected US consumer sentiment data.

Gold for the December delivery fell by USD 10.90 to close at USD 1,759.70 an ounce (28.3 gm) at the Comex division of the NYMEX late yesterday.

Silver for the December contract slumped to conclude at USD 33.67 an ounce.

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