Gold price extends losses, ends at Rs 28,950 per ten grams

New Delhi: Amid a weak trend overseas and easing demand from jewellers at existing levels, gold fell for a second straight day and lost Rs 100 to Rs 28,950 per ten grams at the bullion market Monday.

Silver followed suit and plunged by Rs 775 to Rs 37,025 per kg due to reduced offtake by industrial units and coin makers.

Market men said a weak global trend where rally in the precious metal faltered as rising share markets and a firmer yuan eroded demand for the safe haven as an alternative investment, kept pressure on the precious metal prices.

Moreover, slowdown in buying by jewellers as well as retailers at prevailing levels, too weighed on the prices, they said.

Globally, gold sank 1.9 per cent to USD 1,214.68 an ounce and silver lost 2.7 percent to USD 15.31 an ounce in Singapore today. In addition, more recovery in the rupee against the dollar that made import of precious metals cheaper dampened sentiment, they added.

In the national capital, gold of 99.9 and 99.5 percent purity declined by Rs 100 each to Rs 28,950 and Rs 28,800 per ten grams, respectively. The precious metal had lost Rs 600 on Saturday.

Sovereign however continued to be traded at Rs 23,000 per piece of eight grams in limited deals.

Tracking gold, silver ready dropped further by Rs 775 to Rs 37,025 per kg and weekly-based delivery by Rs 765 to Rs 37,220 per kg.

On the other hand, silver coins were unaltered at Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.