Gold extends weakness, silver below Rs 39,000 on global cues

New Delhi: The slide in both gold and silver continued unabated for the third day largely in tune with a weakening trend overseas amid tepid demand from jewellers and retailers in the domestic spot markets.

While gold dropped to Rs 28,665, silver dipped below the Rs 39,000 mark by falling Rs 500 to Rs 38,500 per kg due to reduced offtake by industrial units and coin makers.

Market men said sentiments remained weak largely in line with a weakening global trend as the prospect of higher borrowing costs in the US damped the appeal for the precious metals, strengthening the dollar.

Globally, gold fell 0.90 per cent to USD 1,201.90 an ounce in Singapore, a level last seen in February.

In addition, muted demand from jewellers and retailers at the domestic spot market kept pressure on the precious metal prices, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 185 each to Rs 28,665 and Rs 28,515 per ten grams, respectively.

The precious metal had lost Rs 375 in last two days.

Sovereign, however, remained steady at Rs 22,800 per piece of eight grams in scattered deals.

Tracking gold, silver ready plunged by Rs 500 to Rs 38,500 per kg and weekly-based delivery lost Rs 415 at Rs 38,450 per kg.

On the other hand, silver coins continued to be traded at previous level of Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.