Gold price retreats on selling, silver slumps

Written by PTI | Mumbai | Updated: Sep 5 2013, 00:09am hrs
Gold prices retreated from yesterday's sharp surge at domestic bullion market on account of hectic selling by stockists and traders amid bearish global cues as well as rupee rebound.

Silver also slumped to revisit Rs 56,000 per kg level owing to sustained speculative unwinding.

The Indian rupee today staged a smart recovery to quote at Rs 67.07 against the dollar on timely intervention by the Central bank amid strong local equities.

Standard gold of 99.5 per cent purity dropped by Rs 570 to close at Rs 31,940 per 10 gm from Tuesday's closing level of Rs 32,510.

Pure gold of 99.9 per cent purity dipped by Rs 565 to end at Rs 32,100 from Rs 32,665.

Silver ready (.999 fineness) tumbled by a massive Rs 2,040 to finish at Rs 56,315 per kg from Rs 58,355 previously.

At overseas, gold eased on dollar gains after strong US data boosted prospects the Federal Reserve may trim its stimulus this month, though continued concerns around Syria prevented further losses.

In London, spot gold was bid lower at USD 1,403.14 an ounce in early trade, while silver was bid down at USD 23.77 an ounce.