Gold remains weak on sluggish demand, global cues

Mumbai-India (Aug 19)  Extending declines for the fourth day, gold prices today fell by another Rs 50 to close at Rs 28,550 per ten gram at the bullion market in the national capital due to subdued demand from jewellers amid a weak trend overseas on easing geo-political tensions.

 However, silver found fresh buying support from industrial units and recovered by Rs 420 to Rs 43,300 per kg.

 Traders said apart from subdued demand from jewellers and retailers, a weakening global trend on easing of tensions in Ukraine mainly kept pressure on gold prices.

 Furthermore, strengthening rupee against the US dollar, making imports cheaper and shifting of funds towards surging equity markets also influenced gold prices, they said.

 Globally, gold in New York fell 0.56 per cent to $1,297.20 an ounce in Monday's trade.

 In Delhi, gold of 99.9 and 99.5 per cent purity traded Rs 50 each down at Rs 28,550 and Rs 28,350 per ten gram respectively.

 The yellow metal had lost Rs 220 in the past three days.

 Sovereign, however, recovered by Rs 100 to Rs 24,800 per piece of eight gram on some buying.

 On the other hand, silver ready rebounded by Rs 420 to Rs 43,300 per kg and weekly-based delivery by Rs 100 to Rs 42,680 per kg.

Source: Rediff