Gold price declines on increased stockist selling, global cues
New Delhi: Continuing its falling streak for the fourth straight session, gold tumbled by Rs 260 to Rs 31,450 per ten grams in the national capital Thursday on heavy selling by stockists, triggered by weak global trend.
Silver also fell by Rs 550 to Rs 49,550 per kg on lack of buying support from industrial units and coin manufacturers at prevailing higher levels.
Traders said continued selling by stockists in tandem with a weakening global trend, on speculation that the US Fed may begin scaling back monetary stimulus as the economy improves, mainly kept pressure on prices.
Gold in Singapore, which normally determines price trend on the domestic front, fell by 0.7 percent to USD 1,335.30 an ounce and Silver by 1.9 per cent to USD 22.32 an ounce.
They said lower domestic demand at current levels and investors shifting their funds to rising equities also influenced the sentiment.
On the domestic front, gold of 99.9 and 99.5 per cent purity remained under selling pressure and tumbled further by Rs 260 each at Rs 31,450 and Rs 31,250 per ten grams, respectively. It had lost Rs 860 in the last three sessions.
Sovereign, however, remained steady at Rs 25,300 per piece of eight gram in restricted buying.
In line with a general weak trend, silver ready declined by Rs 550 to Rs 49,550 per kg and weekly-based delivery by Rs 680 to Rs 49,120 per kg. The white metal had gained Rs 510 yesterday.
Silver coins also dropped by Rs 1,000 to Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.