Gold down by Rs 300, silver by Rs 1,500 on low offtake

Tracking a weak trend overseas, both gold and silver prices today fell in the national capital on reduced offtake and decline in industrial demand.

While gold prices tumbled by Rs 300 to Rs 28,000 per 10 grams, silver dropped by Rs 1,500 to Rs 43,600.

Traders said fall in demand at prevailing higher levels and a steep fall in gold prices in the international markets mainly pulled down the prices.

Globally, gold dropped the most in two months, after employment in the US increased more than forecast in May, boosting concern that the Federal Reserve may scale back monetary stimulus. Silver fell 4.2 per cent to USD 2.74 an ounce.

Gold in New York, which normally sets the price trend on the domestic front, fell 2.6 per cent to USD 1,379.40 an ounce, the biggest decline since April 15.

They said fall in seasonal demand and reduced offtake by industrial units and coins market in line with a weakening global trend put pressure on silver prices.

On the domestic front, gold of 99.9 and 99.5 per cent purity dropped by Rs 300 each to Rs 28,000 and Rs 27,800 per 10 grams, respectively. Sovereigns declined by Rs 100 to Rs 24,200 per piece of eight grams.

Silver ready plunged by Rs 1,500 to Rs 43,600 per kg on slackness in demand from consuming industries and weekly based delivery lost Rs 1,520 to Rs 42,960 per kg.
Similarly, silver coins dropped by Rs 2,000 to Rs 78,000 for buyers and Rs 79,000 for sellers of 100 peices.