Gold extends losses, down Rs.200 on global cues

Falling for the second straight day, gold prices dropped by another Rs.200 to Rs.29,550 per 10 grams on Tuesday, tracking a weak trend overseas amid muted demand from local jewellers.

Silver followed suit and fell further by Rs.300 to Rs.42,500 per kg due to reduced offtake from industrial units and coin makers.

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Marketmen said a weak trend overseas as investors anticipate higher borrowing costs in the US next week that strengthened the dollar and eroded demand for the precious metals as a safe-haven, mainly dampened the sentiment.

Besides, sluggish demand from local jewellers and retailers at domestic spot market also weighed on prices, they said.

Globally, gold fell 0.03 per cent to $1,224.70 an ounce and silver plunged 0.34 per cent to $17.70 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity drifted further down by Rs.200 each to Rs.29,550 and Rs.29,400 per 10 grams, respectively. The precious metal had lost Rs.350 on March 6.

Sovereign, however, remained steady at Rs.24,500 per piece of eight grams.

Following gold, silver ready fell by Rs.300 to Rs.42,500 per kg and weekly-based delivery by Rs.310 to Rs.42,390 per kg.

Silver coins, however, traded at previous level of Rs.73,000 for buying and Rs.74,000 for selling of 100 pieces.