Gold down half a percent; silver falls 1%

Gold down half a percent; silver falls 1%

Mumbai: Gold futures fell half a percent on Friday afternoon, retracing to a level seen earlier in the week, following a similar trend overseas, though a weaker rupee cushioned the fall. Silver extended losses for a third day.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.48% lower at 28,411 per 10 grams at 2:23pm, after hitting a low of 28,377 earlier, a level last seen on 21 November.

Overseas gold edged down below $1,700 an ounce, heading for its second straight weekly fall.. The rupee, which plays an important role in determining the landed cost of the yellow metal, weakened on Friday.

Physical buyers stayed on the sidelines in the middle of the wedding season, which will last peak in December and continue till April.

“There is no demand in the market...Gujarat has imported only 2 tonne in November as against 12 tonne last year," said Haresh Acharya, head of bullion desk, Parker Bullion, adding “demand is zero for silver as well."

The most-active silver for December delivery was 1.12% lower 54,631 per kg, after falling 3.2% in the previous two sessions.

Silver imports to India, the world’s biggest consumer, would be marginally lower in 2011 from last year’s 3,030 tonne as traders are uncomfortable with prices ruling above 50,000 rupees per kg, a senior official at ScotiaMocatta said.