Gold price continues to falter on sliding demand, silver rebounds

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SummaryGold prices dropped for a fourth day at the domestic bullion market today on consistent profit-taking by speculators and demand slump amid strengthening rupee valuations.

Gold prices dropped for a fourth day at the domestic bullion market today on consistent profit-taking by speculators and demand slump amid strengthening rupee valuations.

On the other hand, silver rebounded modestly on the back of renewed industrial demand.

Standard gold (99.5 purity) shed Rs 175 per 10 grams to conclude at Rs 31,475 from overnight closing level of Rs 31,650.

Pure gold (99.9 purity) also declined by Rs 175 per 10 grams to finish at Rs 31,615 from Rs 31,790.

Silver ready (.999 fineness), however, rose by Rs 255 per kg to end at Rs 63,565 as compared to Thursday's close of Rs 63,310.

A sharp rise in rupee value against the US dollar mainly led the gold prices to correct from their all-time peak levels. Though there is wedding seasonal up-tick, consumers are waiting the prices to fall further, a bullion trader said.

The rupee rallied today to end at more than 3-week high at 54.26 against the dollar.

In overseas trade, the yellow metal staged a recovery after Wednesday's plunge on bargain hunting as well as overall weakness in the US currency.

Gold for December delivery spurted by USD 10.70 an ounce (28 gm) to close at USD 1,727.20 an ounce on the Comex division of the NYMEX late yesterday.

March silver contract jumped by 66 cents to settle at USD 34.43 an ounce.

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