Gold extends weakness, dips below Rs 27,000 on global cues

New Delhi: Tracking a weak overseas trend and slackened demand from jewellers at prevailing levels, gold continued its losing streak for the third straight day and tumbled by Rs 380 to Rs 26,650 in the national capital on August 27.

Silver followed suit and plunged by Rs 770 to Rs 34,200 per kg on poor off-take by industrial units and coin makers. Bullion merchants said besides a weak global trend, slackened demand from jewellers and retailers at current levels mainly kept pressure on precious metals prices here.

Globally, gold fell by 1.32 per cent to USD 1,125.40 an ounce and silver by 3.98 per cent to USD 14.11 an ounce in New York in yesterday's trade. The precious metal had lost Rs 545 in last two days. An appreciating rupee against the dollar that made imports cheaper also dampened sentiments, they said.

At the forex market, rupee was trading 28 paise higher at 65.86 (intra-day) against the American currency. In the national capital, gold of 99.9 and 99.5 per cent purity slumped by Rs 380 each to Rs 26,650 and Rs 26,500 per 10 grams, respectively. Sovereign also eased by Rs 100 to Rs 22,500 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 770 to Rs 34,200 per kg and weekly-based delivery by Rs 955 to Rs 33,515 per kg. Silver coins, however, held steady at Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.