Gold down by Rs 550,silver slips by Rs 900 on weak global cues

While gold tumbled by Rs 550 to Rs 27,740 per 10 grams, silver lost Rs 900 to Rs 63,300 per kg on reduced offtake by industrial units amid a weak trend overseas.
Selling pressure in the precious metals gathered momentum as gold declined in global markets after the European Central Bank and policymakers coordinated to lend dollars to eurozone financial institutions, curbing the demand for gold and silver as alternate investment options.

Gold in global markets, which normally sets the price trend on the domestic front, fell by 1.5 per cent to USD 1,762.68 an ounce, the lowest level since August 26.
Silver also fell by 0.8 per cent to USD 39.54 an ounce.

Besides, fall in demand at existing higher levels and shifting of funds from weak bullion to rising equity also dampened the trading sentiment.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 550 each to Rs 27,740 and Rs 27,590 per 10 grams, respectively. The metal had lost Rs 175 yesterday.

Sovereigns followed suit and declined by Rs 100 to Rs 22,600 per piece of eight grams.

In line with a general weak trend, silver ready dropped further by Rs 900 to Rs 63,300 per kg. It had recorded a fall of Rs 800 in the previous session.

Similarly, the silver weekly-based delivery plunged by Rs 1,300 to Rs 63,300 per kg, in continuation to a fall of Rs 760 yesterday.

Silver coins dropped by Rs 2,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.