Silver falls Rs. 1,320 on global cues

There was no change in the pattern of trade in the bullion market today as silver tumbled by Rs 1,320 to Rs 53,200 per kg, while gold added another Rs 165 to Rs 22,810 per 10 grams in line with a similar trend in overseas markets.

Silver coins followed suit and lost Rs 2,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.

The white metal remained under pressure as speculators off-loaded their holdings on weak overseas trend amid reduced offtake at existing high levels. Silver shed 0.2 per cent to $36.48 an ounce overseas.

On the other hand, gold managed to gain further ground by adding $9.30 to a two-week high of $1,550.90 an ounce,on concerns over Europe's debt crisis and slowing economic growth.

Traders said retail customers and industrial units refraining to buy silver at existing high levels and expectations of further fall in its prices in global markets kept the metal under pressure.

They added that the yellow metal's demand rose as an alternate investment in global markets following steep fall in stocks and other financial markets.

"The bullion is fast moving on international trend rather than any purchases by retail customers for the ongoing marriage season," a Delhi-based jeweller Suresh Verma said.

Both silver ready and weekly-based delivery plunged by Rs 1,320 to Rs 53,200 per kg each. The metal had lost Rs 130 in the previous session.

The gold of 99.9 per cent and 99.5 per cent purity jumed up by Rs 165 each to Rs 22,810 and Rs 22,690 per 10 grams, respectively. It had gained Rs 75 yesterday.

Sovereigns added Rs 50 to Rs 18,750 per piece of eight grams.

ALSO READ

Gold prices fall by 1.54% in futures trade

China, India demand not enough to save gold: Clyde Russell

Losing shine: Investors taking more risks, selling gold to free up cash

Gold prices fall below Rs 26,000/10grams in futures trade