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Gold down to Rs22,120 despite heavy buying on Akshaya Tritiya

Gold down to Rs22,120 despite heavy buying on Akshaya Tritiya
PTI
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First Published: Fri, May 06 2011. 05 03 PM IST
Updated: Fri, May 06 2011. 05 03 PM IST
New Delhi: Even as buying activity remained high on the auspicious day of Akshaya Tritiya, both the precious metals tumbled on Friday on weak global cues. Silver nose-dived by Rs6,000 to Rs53,200 per kg and gold plummeted by Rs225 to Rs22,120 per 10 grams.
Retail customers resorted to active gold buying to mark the day of Akshaya Triitya, considered to be an auspicious occasion in Hindu mythology to make token purchases.
Traders said the demand among retailers for the festival had hardly any impact of the sliding precious metals prices despite the ongoing weakening trend in domestic as well as overseas markets.
“The weakening trend has hardly impacted retailers activity as they are dedicatedly making token buying in gold on every fall in the market,” said Suresh Verma, a Delhi-based jeweller.
“At least the buying has capped any major fall in gold prices, while silver remained unattended, losing substantial ground,” he said.
Trading sentiments remained weak in silver as its prices recorded a steepest weekly fall since 1975 in global markets after impositions of higher margins. Gold also had its biggest weekly drop since 27 February 2009.
Silver in global markets, which normally sets a price trend on the domestic front, fell 12.01% to $34.66 an ounce, taking losses to 28% this week and gold by $43.40 to $1,473.10 an ounce in New York.
The Standard and Poor’s GSCI index of 24 commodities sank 6.5% on concern that slower global growth may crimp demand and investors sold to book-profits and shift their funds to surging equity markets.
On the domestic front, silver ready nose-dived by Rs6,000 to Rs53,200 per kg and weekly-based delivery by Rs5,900 to Rs53,100 per kg. Silver coins lost Rs4,000 to Rs59,500 for buying and Rs60,500 for selling of 100 pieces.
In line with a general weakening trend, gold of 99.9 and 99.5% purity plunged by Rs225 each to Rs22,120 and Rs22,000 per 10 grams, respectively.
However, sovereigns, found scattered buying support from retailers and gained Rs100 to Rs18,300 per piece of eight grams.
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First Published: Fri, May 06 2011. 05 03 PM IST
More Topics: Gold | Bullion | Silver | Akshaya Tritiya | Commodity |