Gold prices fell sharply by Rs 200 to Rs 27,630 per ten gram at the bullion market today, extending yesterday’s losses, tracking a weak trend overseas and easing demand from jewellers and retailers.
Silver also drifted by Rs 450 to Rs 37,650 per kg on reduced offtake by industrial units and coin makers.
Traders said besides subdued demand from jewellers and retailers, a weak global trend where gold fell to almost four-week low on strengthening dollar and prospects for higher US interest rates reducing its appeal, mainly kept pressure on precious metal prices.
Globally, gold in New York fell by 1 per cent to USD 1,218.20 an ounce. Silver also slid 0.7 per cent to USD 16.76 an ounce in yesterday’s trade.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 200 each to Rs 27,630 and Rs 27,430 per ten gram respectively. It had shed Rs 50 yesterday.
Sovereign followed suit and traded lower by Rs 50 to Rs 23,750 per piece of eight gram.
In line with a general weak trend, silver ready dropped by Rs 450 to Rs 37,650 per kg and weekly-based delivery by Rs 475 to Rs 37,180 per kg.
On the other hand, silver coins held steady at Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.