Falling for the third day in a row, gold shed R50 to R31,800 per 10 gm on sluggish demand at existing high levels. Silver, on the other hand, found fresh buying support from industrial units and rose by R650 to R61,250 per kg. Traders said business volumes declined as some shops were closed for Anantchaudas, and retail customers refrained from buying at prevailing higher levels. Investors were also seen diverting funds from bullion to equities which also put pressure on gold prices, they added. On the domestic front, gold of 99.9 and 99.5% purity shed R50 each to R31,800 and R31,600 per 10 gm, respectively. The metal has lost R260 in last two sessions.
Essar oil sells diesel cargo on lower demand
Indias privately owned Essar oil has sold a diesel cargo for October lifting through a spot tender, in a rare export tender due to a slowdown in domestic demand, traders said on Friday. Demand for diesel in India has been low due to monsoon rains and poorer economic outlook which has prompted the sell cargoes from Essar Oil, traders said. Weak diesel demand in India follows a trend in China, where demand for the fuel has decreased due to slowing industrial activity amid a weaker global economic outlook. As a result, diesel margins have slipped to a nearly two-week low as of Thursday, Reuters data showed.