Gold extends losses for 2nd week; down Rs 150

Gold extends losses for 2nd week; down Rs 150 Zee Media Bureau

New Delhi: Gold and silver extended losses for the second straight week at the bullion market on increased selling by stockists due to fall in demand following ending of "Navratras" amid a weak global trend.

Traders said increased selling by stockists due to fall in demand following ending of "Navratras" mainly led to decline in gold and silver prices.

Gold in New York fell to three-month low on speculation that US lawmakers will reach an agreement to increase the nation's debt limit, curbing demand for bullion as a store of value, also dampened the sentiment, they said.

Strengthening of rupee against the dollar, which closed at a fresh two-month high of 61.07, making gold imports cheaper, also influenced the sentiment, they added.

In the national capital, gold of 99.9 and 99.5 percent purity opened strong at Rs 30,650 and Rs 30,450 on fresh buying activity due to "Navratras" and rose further to Rs 31,000 and Rs 30,800 per ten grams, respectively.

Later, it met with stockists selling on the back of weak global trend and tumbled to close at Rs 30,200 and Rs 30,000 per ten grams, showing a moderate fall of Rs 150 each.

Sovereign moved between gains and losses on alternate bouts of buying and selling and settled around previous week's level of Rs 25,000 per piece of eight grams.

Silver ready and weekly-based delivery followed suit and commenced higher at Rs 48,700 and Rs 48,500, strengthening to Rs 49,950 and Rs 49,650 per kg, respectively on increased offtake by industrial units and coin makers.

Later, it met with resistance and ended lower by Rs 1,560 and Rs 1,005 to Rs 46,890 and Rs 47,190 per kg, respectively.

Silver coins also plunged by Rs 1,000 to Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.