Gold dives on selling by stockists, silver rises

MUMBAI: Snapping its two-session surge, gold prices dropped today following heavy offerings by stockists and speculators amidst subdued investment buying.

On the other hand, silver continued to move higher on steady demand from coin and jewellery makers.

Standard gold (99.5 purity) skidded by Rs 246 to quote at Rs 28,224 per 10 grams at 1700 hrs from Rs 28,470 Monday, a bullion trading company said.Pure gold (99.9 purity) also slumped by Rs 256 to Rs 28,374 per 10 grams as compared to Rs 28,630 previously, according to Riddisiddhi Bullions Ltd.

Silver (.999 fineness), however gained by Rs 38 to Rs 43,108 per kg at 1700 hrs from overnight level of Rs 43,070.Globally, the shiny metal remained under intense selling pressure to hover near six weeks lows on sustained unwinding by investors following dovish comments from Fed Chairman Janet Yellen as well as strong equity markets.

Gold for June delivery slipped by $ 10.50 to settle at $ 1,283.80 on the comex division of the NYMEX late yesterday and May silver contract softened to $ 19.75 an ounce.