Gold declines for 2nd week; falls Rs 560 per 10 gms

Gold declines for 2nd week; falls Rs 560 per 10 gms New Delhi: Gold prices declined for the second week in a row in the bullion market here on sustained selling by stockists amid slackened demand at prevailing higher levels and a weak global trend.

Silver followed suit and traded lower on reduced offtake by industrial units.

Traders said apart from a weak trend in the global markets, increased selling by stockists and fall in demand at prevailing higher levels mainly kept pressure on gold prices.

They said strengthening of rupee, which rallied to a five-month high of Rs 52.85 against the dollar, and diverting of funds by some investors from bullion to equity market also influenced the gold prices.

Gold shed 0.20 percent at USD 1,771.10 an ounce this week in New York.

On the domestic front, in the national capital, gold of 99.9 and 99.5 percent purity commenced lower at Rs 31,950 and Rs 31,755, respectively.

They subsequently found some buying support for the coming marriage season and recovered to Rs 32,110 and Rs 31,910, before slipping to close at Rs 31,580 and Rs 31,380 per 10 grams, a fall of Rs 560 each.

Sovereign followed suit and lost Rs 50 at Rs 25,400 per piece of eight grams.

Silver ready lost Rs 200 and weekly-based delivery Rs 470 to Rs 61,000 and Rs 62,770 per kg, respectively, after moving between gains and losses on alternate bouts of buying and selling.

Silver coins remained unaltered at Rs 77,000 for buying and Rs 78,000 for selling of 100 coins.

PTI