Gold prices weakened further and closed below the Rs 26,000 per 10 grams mark at the domestic bullion market on Monday, due to reduced offtake from jewellery stockists as well as lack of local buying support.
Expectations of a further fall in prices in the coming days after scrapping of gold import curbs alongside sharp volatility in overseas market mainly kept buyers on the sidelines.
On the other hand, silver rebounded sharply on the back of renewed industrial demand.
Standard gold (99.5 purity) moved down by Rs 35 to close at Rs 25,965 per 10 grams from last Saturday’s closing level of Rs 26,000.
Pure gold (99.9 purity) also eased by a similar margin to end at Rs 26,115 per 10 grams compared to Rs 26,150.
However, silver (.999 fineness) rose by Rs 125 to conclude at Rs 36,115 per kg from the weekend level of Rs 35,990.
On the global front, the yellow metal plummeted sharply to its lowest since 2009, after Swiss voters rejected a referendum requiring their central bank to hold a portion of its assets in gold.
However, the shiny metal managed to recover from the day’s low on weak Chinese data.
Spot gold was bid higher at USD 1,175 an ounce in early European trade.