Gold snaps 5-day long rally, down by Rs 110 on global cues
New Delhi: Snapping its five-day long rally, gold prices today fell by Rs 110 to Rs 26,720 per 10 grams in the national capital on sluggish demand at prevailing higher levels amid a weak global trend.
Silver also dropped by Rs 800 to Rs 40,600 per kg on reduced offtake by industrial units and coin makers.
The sentiment turned bearish after gold fell for a second day in global markets before US jobs data that may add to signs the economy is improving, fuelling speculation the Federal Reserve will scale back monetary stimulus.
Gold in Singapore, which normally sets the price trend on the domestic front, lost 0.9 percent to USD 1,239.27 an ounce and silver sank 2.1 percent to USD 19.1565 an ounce.
Besides, sluggish demand at prevailing higher levels further dampened the sentiment to some extent.
On the domestic front, gold of 99.9 and 99.5 percent purity fell by Rs 110 to Rs 26,720 and Rs 26,520 per 10 grams, respectively. The yellow metal had gained Rs 1180 in last five sessions. Sovereigns continued to be asked around previous level of Rs 24,000 per piece of eight grams in scattered deals.
In line with a general weak trend, silver ready dropped by Rs 800 to Rs 40,600 per kg and weekly-based delivery by Rs 1,265 to Rs 39,905 per kg. The white metal had gained Rs 150 yesterday.
Silver coins also plunged by Rs 2,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.