Gold on Wednesday fell from its one-month high level and lost R35 to R28,330 per 10 grams in the national capital, owing to decline in demand at the prevailing higher levels amid a weak global trend. Silver also declined by R140 to R41,980 per kg on reduced offtake by industrial units and coin-makers. Meanwhile, gold had gained R1,075 and silver R1,595 in the previous two sessions. After gaining R1,075 in the last two sessions, traders and retailers refrained from buying at the prevailing higher levels, experts said.
They said a weakening trend in overseas markets, as investors sold the metal following the recent upsurge, further influenced market sentiment.
Gold in Singapore, which normally sets the price trend on the domestic front, fell 0.5% to $1,338.60 an ounce and silver by 1.4% to $20.19 an ounce.
Chana at contract low, prices likely to fall further
Indian chana, or chickpea, futures hit a contract low for a fifth straight day on Wednesday, weighed by a rise in the cultivating area of summer-sown pulses, favourable weather and weak local demand. The August contract for chana was down 0.73% at R2,734 per 100 kg on the NCDEX at 0841 GMT, after hitting a contract low of R2,713 earlier in the day. “There is lack of buying interest among local traders. Prices are expected to fall to R2,600 in the medium term,” said Vedika Narvekar, a senior analyst at Angel Commodities. Ample rains in the country have raised the prospects of better chana sowing.