Gold, silver slide on global cues, fall in demand

TIL Desk/Business/New Delhi/ Gold prices dropped by Rs 820 to close at Rs 33,770 per ten grams during the week at the bullion market on account of fall in demand from local jewellers and subdued global trend. Silver rates also saw a decline during the week and slipped below the Rs 40,000-mark on poor offtake by industrial units and coin makers.

Sentiment turned downbeat in sync with the weak trend overseas on a stronger dollar which soared to a 10-week high and rising US treasury yields, boosted by better-than-expected US GDP data for the fourth quarter, released during the week. Higher global stocks too weighed on the domestic bullion market sentiments.

Globally, spot gold ended the week lower at USD 1,293.90 an ounce, its lowest since January 28 and silver at USD 15.29 an ounce in New York. Moreover, a considerable fall in demand from local jewellers and retailers at domestic spot market too put pressure on the precious metal prices, they said.

In the national capital, gold of 99.9 per cent purity after a steady opening at Rs 34,590 per ten grams turned weak in tandem with subdued overseas leads and and fading demand from local jewellers and slipped gradually to end the week with a steep fall of Rs 820 at Rs 33,770.