Gold price extends losses, down Rs 200 at Rs 29,550 per 10 grams

New Delhi: Falling for the second straight day, gold prices dropped by another Rs 200 to Rs 29,550 per 10 grams Tuesday, tracking a weak trend overseas amid muted demand from local jewellers.

Silver followed suit and fell further by Rs 300 to Rs 42,500 per kg due to reduced offtake from industrial units and coin makers.

Marketmen said a weak trend overseas as investors anticipate higher borrowing costs in the US next week that strengthened the dollar and eroded demand for the precious metals as a safe-haven, mainly dampened the sentiment.

Besides, sluggish demand from local jewellers and retailers at domestic spot market also weighed on prices, they said.

Globally, gold fell 0.03 percent to USD 1,224.70 an ounce and silver plunged 0.34 percent to USD 17.70 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 percent purity drifted further down by Rs 200 each to Rs 29,550 and Rs 29,400 per 10 grams, respectively. The precious metal had lost Rs 350 yesterday.

Sovereign, however, remained steady at Rs 24,500 per piece of eight grams.

Following gold, silver ready fell by Rs 300 to Rs 42,500 per kg and weekly-based delivery by Rs 310 to Rs 42,390 per kg.

Silver coins, however, traded at previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.