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Gold prices stay soft, losses deepen on weakening demand

Gold prices stay soft, losses deepen on weakening demand

New Delhi: After Wednesday’s steep fall of Rs 730, gold prices were down by another Rs 30 to Rs 30,490 per 10 grams at the bullion market on Thursday, tracking a weak global trend amid muted demand from jewellers at the spot market.

Silver too remained under selling pressure and broke below the Rs 43,000-mark by falling Rs 400 to Rs 42,850 per kg.

Sentiment was weak, largely in step with a sluggish trend overseas where the precious metal traded at over 3-month lows amid growing expectations that an improving US economy will prompt the Fed to boost interest rates soon, reducing the appeal of gold as a safe haven, traders said.

Globally, gold fell 0.14 per cent to USD 1,264.70 an ounce in Singapore.

Furthermore, fading demand from jewellers and retailers at the domestic spot market fuelled the downward trend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 30 each to Rs 30,490 and Rs 30,340 per ten grams, respectively. The precious metal had tumbled Rs 730 yesterday — the biggest single-day fall this year.

Sovereign, however, found scattered buying from retailers and traded higher by Rs 50 to Rs 24,400 per piece of eight grams.

Tracking gold, silver ready fell Rs 400 to Rs 42,850 per kg and weekly-based delivery Rs 515 to Rs 42,545 per kg.
Silver coins, too, plunged by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.