Gold falls to ten-mth low on sustained selling, global cues

Gold prices dropped to a ten month low today by falling Rs 100 to Rs 29,500 per ten grams due to sustained selling by stockists, influenced by a weak global trend.

However, silver recovered by Rs 500 to Rs 51,750 per kg on low level buying by industrial units. The metal had tumbled Rs 2,250 in last two sessions to hit 15-month lows yesterday.
Sentiment in gold remained bearish after it extended losses in global markets, on concern that investors are seeking higher returns in other assets as the global economy recovers.

Gold in global markets, which normally set price trend on the domestic front, lost 1 per cent to USD 1,541.82 an ounce, the lowest level since May 30 and silver by 1 per cent to USD 26.73 an ounce, the lowest level since July 24 in Singapore.

In addition, sustained selling by stockists following sluggish demand on off marriage season further fuelled the downtrend.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 100 each to Rs 29,500 and Rs 29,300 per ten grams, respectively. Sovereign held steady at Rs 25,100 per piece of eight gram in limited deals.

On the other hand, silver ready found low level buying support from industrial units and recovered by Rs 500 to Rs 51,750 per kg while weekly-based delivery shed another Rs 70 to Rs 50,830 per kg.

Silver coins continued to be asked around previous level of Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.