Gold falls by Rs 175 to Rs 26,400 on sluggish demand, global cues

Mumbai: Tracking a weak overseas trend and slackened demand from jewellers, gold continued its losing streak for the fourth straight day and prices tumbled by Rs 175 to Rs 26,400 per 10 grams in the national capital today.

However, silver recovered by Rs 50 to Rs 34,750 per kg on scattered enquiries from industrial units and coin makers.

Bullion traders said a weakening global trend after consumer confidence in the US unexpectedly rose in September, building the case for an interest rate increase this year, dampened the sentiment here.

Globally, gold fell 0.4% to $1,123.03 an ounce in Singapore.

Sluggish demand from jewellers and retailers and rupee strengthening against the dollar, making imports cheaper, too put pressure on gold prices, they said.

In the national capital, gold of 99.9 and 99.5% purity dropped by another Rs 175 each to Rs 26,400 and Rs 26,250 per ten grams, respectively. The precious metal had lost Rs 675 in the previous three sessions.

Sovereign also plunged by Rs 150 at Rs 22,200 per piece of eight grams.

On the other hand, silver ready recovered marginally by Rs 50 to Rs 34,750 per kg, while weekly-based delivery shed Rs 15 at Rs 34,815 per kg on lack of buying support.

Silver coins held steady at Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.

PTI