Gold price extends losses; down Rs 120 at Rs 28,780 per 10 grams

New Delhi: Gold fell for the second day Monday, plunging another Rs 120 to Rs 28,780 per 10 grams at the bullion market, in line with a weak movement overseas and easing demand from local jewellers.

Silver followed suit and slumped below the Rs 37,000 mark by tumbling Rs 900 to Rs 36,500 per kg on poor offtake by industrial units and coin makers.

Traders said that a relatively solid US jobs data indicates a higher US interest rate this year, that could affect the demand for the precious metal as a safe haven investment, mainly dampened sentiment.

Globally, gold prices fell 0.40 percent to USD 1,207.40 an ounce and silver by 1.93 percent to USD 15.27 an ounce in Singapore.

In addition, poor demand from local jewellers and retailers at domestic spot market also weighed on gold prices.

In the national capital, gold of 99.9 percent and 99.5 percent purity drifted lower by Rs 120 each at Rs 28,780 and Rs 28,630 per 10 grams, respectively. The precious metal had lost Rs 250 in Saturday's trade.

Sovereign also traded lower by Rs 100 to Rs 24,300 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 900 to Rs 36,500 per kg and weekly-based delivery slipped below the Rs 36,000-mark by falling Rs 645 to Rs 35,585 per kg.

Silver coins too plummeted by Rs 2,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.