Gold prices drops on weak global trend, ‘Dhanteras’ Can`t hold falling Bullion

New Delhi – Gold prices fell for the fifth straight day in the national capital on Friday on heavy selling by stockists in line with weak global trend.

The prices of yellow metal declined despite the ongoing token buying for the auspicious festival of Dhanteras.

After losing Rs 1,120 in last four sessions, gold fell further by Rs 50 to Rs 31,400 per ten gram and silver by Rs 450 to Rs 49,100 per kg in continuation with a loss of Rs 550 yesterday on reduced offtake by industrial units.

However, some token buying for Dhanteras, which is considered to be an auspicious day in Hindu mythology for making fresh purchases, restricted the losses.

Sentiment mainly remained bearish on stockists selling driven by a weak global trend as gold suffered biggest loss in almost three weeks and silver the largest slump in more than a month.

Gold in New York, which normally set price trend on the domestic front, fell by 1.9 per cent to $ 1,323.70 an ounce, the biggest drop since October 11, and silver by 4.9 per cent to $ 21.86 an ounce, a largest fall since September 20.

Investors diverting their funds from weakening bullion to surging equity, which climbed to new high, also influenced the trading sentiment, they said.

On the domestic front, gold of 99.9 and 99.5 per cent purity shed Rs 50 each to Rs 31,400 and Rs 31,200 per ten gram, respectively. Sovereign held steady at Rs 25,300 per piece of eight gram in limited deals.

Silver ready fell by Rs 450 to Rs 49,100 per kg and weekly-based delivery by Rs 425 to Rs 48,695 per kg. Silver coins continued to be asked at last level of Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.