Stockists sale pulls down prices of silver, gold
Domestic silver experienced a free-fall across the board on Tuesday following a bearish trend in international markets and recorded a hefty one-day fall between Rs 350 and Rs 100 per kg as stockists took profits to minimise losses.
By TNN |
MUMBAI: Domestic silver experienced a free-fall across the board on Tuesday following a bearish trend in international markets and recorded a hefty one-day fall between Rs 350 and Rs 100 per kg as stockists took profits to minimise losses.
Gold also came under sustained selling from stockists. Even some physical buying for the ongoing marriage season failed to arrest the falling trend, a local bullion dealer said. A general holiday for Moharram also dampened the buying sentiment to some extent, he added.
In European trading, a rise in oil prices amidst late buying lifted gold prices, but investors were in wait-n-watch mode ahead of a Federal Reserve meeting that may determine the metal���s price direction. Oil prices gained more than 1%, raising gold���s appeal as a hedge against inflation. However, there was no immediate impact in the domestic market.
Turning to silver, in domestic market, Delhi suffered the most where spot silver (.999) prices crashed by Rs 350 per kg to Rs 19,350. In Mumbai, the metal edged down by a Rs 165 before settling at Rs 19,730, followed by a loss of Rs 100 at Rs 19,300 per kg in Kolkata. In Chennai, the metal however held steady at Rs 19,625 per kg on some enquiries from jewellery fabricators amidst tight supply.
In London, silver also bounced back in line with gold and rose to $13.31/13.38 an ounce from $13.14/13.21 in New York.
In Delhi, standard gold (99.5) moved down further by Rs 30 at Rs 9,330, followed by a drop of Rs 20 at Rs 9,385 per 10 gm in Kolkata. The yellow metal closed lower by Rs 20 at Rs 9,820 in Chennai, while in Mumbai the softened by Rs 15 at Rs 9,240 per 10 gm.
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In London, spot gold after touching an intraday high of $645.8 an ounce, slipped to $645.3/646.1, but still higher against $642.6/643.6 in New York on Monday. In Hong Kong, gold fell to $641.6/642.4 an ounce from the last close of $644.5/645.3.
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