Gold drops for 4th day on sustained selling, global cues

NEW DELHI: Gold prices dropped for the fourth day by losing Rs230 to Rs29,350 per ten grams in Delhi bullion markets on Thursday on sustained selling by stockists against subdued demand.
Silver also maintained a downward trend for the ninth day and lost Rs550 to Rs43,400 per kg on poor offtake by industrial units and coin makers.
Traders said besides sustained selling by stockists against subdued demand, strengthening rupee led to persistent fall in prices. It fell further on weakening global trend as signs of recovery in the US economy reduced demand for the precious metals as safe haven.
Gold in London, which normally sets price trend on the domestic front, fell by 0.87% to $1,294.40 an ounce and silver by 0.33% to $19.67 an ounce.
Investors shifting their funds from weakening bullion to soaring equities too had a negative impact on the prices, they added.
On the domestic front, gold of 99.9 and 99.5% purity remained under selling pressure and fell further by Rs230 each to Rs29,350 and Rs29,150 per ten grams, respectively. The yellow metal had lost Rs770 in last three sessions. Sovereign followed suit and declined by Rs100 to Rs24,900 per piece of eight grams.
Silver ready moved down by Rs550 to Rs43,400 per kg and weekly-based delivery by Rs670 to Rs42,900 per kg. The white metal had lost Rs3,250 in the precious eight days.
Silver coins dropped by Rs1,000 to Rs81,000 for buying and Rs82,000 for selling of 100 pieces.