Mumbai: Extending its losses, gold dropped by Rs195 per 10 grams at the bullion market Tuesday following reduced investor demand and jewellery offtake amid lower global cues.
Silver too continued its downtrend and fell by Rs420 per kg due to subdued demand by industrial units and coin makers. Standard gold (99.5 purity) declined by Rs195 to finish at Rs29,500 per 10 grams from last Friday’s closing level of Rs29,695.
Pure gold (99.9 purity) also fell by the same amount to conclude at Rs29,650 per 10 grams as compared to Rs29,845 previously. Silver (.999 fineness) dipped by Rs420 per kg to end at Rs38,990 against Rs39,410 last weekend.
Globally, gold fell to its lowest in seven weeks early Tuesday after strong US economic data reinforced expectations of another interest rate rise in the US this year and pushed the dollar and US bond yields higher. Spot gold was flat at $1,270.70 an ounce in early European trade, while silver was up at $16.58 an ounce but still near its lowest since 9 August.