Gold extends losses on sluggish demand, global cues

New Delhi: Falling for the second straight day, gold prices on Friday further eased by Rs 90 to Rs 25,710 per ten gram at the bullion market due to subdued demand from jewellers amid weak global cues.

Silver also dropped by Rs 250 to Rs 34,050 per kg hit by lack of buying support from industrial units and coin makers.

Bullion traders said a weak trend overseas influenced the domestic sentiment amid the US Federal Reserve's strong indications that interest rate will go up next week after nearly a decade, boosting dollar and eroding demand for the precious metal.

Globally, gold lost 0.5 percent to $1,065.97 an ounce in Singapore, while it fell 0.27 percent to $1,068.60 an ounce in London.

Further, slackened demand from jewellers and retailers also dampened sentiment, they said.

In the national capital, gold of 99.9 percent and 99.5 percent purity declined by Rs 90 each to Rs 25,710 and Rs 25,560 per 10 grams, respectively. The precious metal had shed Rs 40 yesterday.

Sovereign, however, remained flat at Rs 22,200 per piece of eight grams.

Tracking gold, silver ready fell by Rs 250 to Rs 34,050 per kg and weekly-based delivery by Rs 105 to Rs 34,245 per kg.

On the other hand, silver coins maintained a steady trend at Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.