Gold loses sheen on muted demand, silver also eases

Snapping its four-day rising streak, gold retreated from a two-year high, falling Rs 100 to Rs 30,200 per 10 grams at the bullion market on Monday because of slackened demand by jewellers at existing levels even as the precious metal firmed up overseas.

Silver also eased by Rs 150 to Rs 41,700 per kg because of reduced offtake by industrial units and coin makers.

Traders said fall in demand from retailers at the existing level mainly caused the decline in gold prices, but a firm trend overseas capped the losses.

Globally, gold rose 0.2 per cent to trade at about 15-month high of $1,296.12 an ounce in Singapore on Monday as the dollar tumbled to almost one-year low.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 30,200 and Rs 30,050 per 10 grams, respectively.

The precious metal had gained Rs 725 in the previous four trading sessions.

Sovereign, however, held steady at Rs 23,300 per piece of eight grams.

Tracking gold, silver ready too softened by Rs 150 to Rs 41,700 per kg while weekly-based delivery recaputured the 42,000-mark by climbing Rs 635 to Rs 42,200 per kg on speculators' buying.

On the other hand, silver coins traded at previous level of Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.