Gold marks 7th straight weekly loss, Silver remains sluggish

By: | Published: December 5, 2015 8:02 PM

Gold continued its prolonged downward journey, marking its seventh straight weekly loss at the domestic bullion market due to reduced offtake from jewellery stockists and traders against uncertain demand environment.

gold importIn a little over seven weeks, gold has shed 6.86 per cent, or Rs 1,725.00 per 10 grams. (Reuters)

Gold continued its prolonged downward journey, marking its seventh straight weekly loss at the domestic bullion market due to reduced offtake from jewellery stockists and traders against uncertain demand environment.

Lack of local buying interest at existing levels as well as lacklustre investment sentiment due to uncertainty surrounding over the US Federal Reserve’s first rate hike in nearly a decade also impacted the price movements.

Being squeezed by falling prices, many speculators have moved to the sidelines, at least for now, a bullion trader commented.

After a subdued start, in line with global trend, the yellow metal plunged below the key psychological Rs 25,000 mark briefly in a mid-week crash before rebound smartly to cut short its heavy losses.

In a little over seven weeks, gold has shed 6.86 per cent, or Rs 1,725.00 per 10 grams.

Elsewhere, silver also remained under intense selling pressure from speculators and stockists coupled with poor industrial demand.

In worldwide trade, the shiny-metal snapped its six-week uninterrupted slide and rebounded from multi-year low on the back of massive ECB-induced short-covering buying spree despite the release of highly bullish US employment data.

In the New York Comex trade, gold for December delivery settled at USD 1,084.10 an ounce as compared to last Friday’s close of USD 1,056.20 and March December contract rose to end at 14.528 an ounce from USD 14.030.

On the domestic front, standard gold (99.5 purity) resumed substantially weak at Rs 25,110 per 10 grams against last Friday’s finish of Rs 25,285 and swung widely between a high of Rs 25,300 and a low of Rs 24,885 before concluding at Rs 25,140, showing a loss of Rs 145 per 10 grams, or 0.53 per cent.

Similarly, pure gold (99.9 purity) opened lower at Rs 25,260 per 10 grams from preceding weekend level of Rs 25,435 and hovered between Rs 25,450 and Rs 25,035 before ending at Rs 25,290, revealing a fall of Rs 145 per 10 grams, or 0.57 per cent.

Silver ready (.999 fineness) commenced sluggish at Rs 34,600 per kilogram from previous close of Rs 34,715 and moved in a narrow range of Rs 34,665 and Rs 34,245 before settling at Rs 34,600, registering a modest decline of Rs 115 per kilo, or 0.33 per cent.

Gold reclaimed the psychological Rs 26,000-mark per ten gram at the bullion market during the week, tracking a firm trend overseas and increased buying by jewellers, driven by ongoing wedding season.

Silver also strengthened on increased offtake by industrial units and coin makers.

Bullion traders said a firming trend overseas where it rebounded from over five-year low as the dollar reversed gains versus the euro after the European Central Bank cut its deposit rate less than expected, mainly helped gold to top the Rs 26,000-mark.

Besides, wedding season buying by jewellers and retailers too supported the upside in the precious metal prices, they said.

Globally, gold climbed to USD 1,086.30 an ounce, after touching a low of 1,045.40 on December 3, the lowest since 2010 in New York.

In the national capital, gold of 99.9 and 99.5 per cent purity, in volatile movements, commenced the week lower at Rs 25,525 and Rs 25,375 per ten grams but rebounded in tune with overseas trend and closed at Rs 26,000 and Rs 25,850 per ten grams respectively, showing a gain of Rs 385 each.

Sovereign too finished higher by Rs 200 to Rs 22,300 per piece of eight gram.

In line with gold, silver ready ended the week higher by Rs 850 to Rs 34,950 per kg and weekly-based delivery by Rs 1460 to Rs 35,160 per kg.

Silver coins, however, after moving between gains and losses and finally settled at previous week’s level of Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

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