Gold, silver prices extend losses on sustained selling, global cues

Both the precious metals, gold and silver, fell for the second straight session here today due to sustained selling by stockists against lack of buying support and weakening global trend.

While gold plunged by Rs 190 to Rs 31,100 per 10 grams, silver lost Rs 500 to Rs 58,900 per kg owing to reduced offtake.

The trading sentiment remained bearish after gold headed for the biggest decline in almost two weeks in global markets as a drop in US jobless claims signalled an improving outlook for economic growth and curbed demand for the precious metal as a haven asset.

In New York, gold plunged by USD 17.40 to USD 1667.40 an ounce and silver by 1.89 per cent to USD 31.62 an ounce.

In addition, some investors were seen shifting their funds from weakening bullion to rising equity and retail customers refraining from buying at existing higher levels also influenced the trading sentiment here.

Gold had become costlier by Rs 475 in three sessions ever since the government hiked import duty by two per cent on Monday and shed Rs 95 yesterday.

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged further by Rs 190 each to Rs 31,100 and Rs 30,900 per 10 grams, respectively. Sovereigns followed suit and shed Rs 50 to Rs 25,450 per piece of eight grams.

In a similar fashion, silver ready and weekly-based delivery dropped by Rs 500 each to Rs 58,900 per kg, respectively. It had lost Rs 350 in the previous session.

Silver coins also tumbled by Rs 2,000 to Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces on resistance in demand at prevailing higher levels.

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