Gold extends losses on global cues; Silver stages recovery

New Delhi: In a mixed pattern of trading, gold extended losses for the second straight day and prices fell by another Rs 160 to Rs 27,030 per ten grams in tandem with weak global market, while silver rebounded by Rs 510 to Rs 37,210 per kg on revival of buying by industrial units. Traders said weakening global trend where gold fell to a six-week low on mounting speculation that the Federal Reserve is moving closer to raising US interest rates mainly kept pressure on gold prices.

Gold in New York, which normally determines price trend on the domestic front, fell 0.7 per cent to settle at USD 1,174.50 an ounce after touching USD 1,168.40, the lowest since March 20 in yesterday's trade. Besides, fall in demand from jewellers and retailers at prevailing levels fuelled the downtrend in gold, they said. In the national capital, gold of 99.9 and 99.5 per cent purity fell further by Rs 160 each to Rs 27,030 and Rs 26,880 per ten gram respectively.

It had plunged by Rs 285 yesterday. Sovereign, however, continued to be asked at last level of Rs 23,700 per piece of eight gram. On the other hand, silver ready recovered by Rs 510 to Rs 37,210 per kg and weekly-based delivery edged up by Rs 25 to Rs 36,540 per kg. Silver coins also spurted by Rs 1,000 to Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.