Gold extended its slide for the second straight day as prices plunged Rs 100 to Rs 25,650 per 10 grams. Silver too slipped below the Rs 34,000-mark by falling Rs 225 to Rs 33,800 per kg.
In the Multi Commodity Exchange, silver for delivery in December lost Rs 201, or 0.60 percent, to Rs 33,388 per kg in a business turnover of 346 lots. Similarly, the white metal for delivery in far-month of March 2016 was trading lower by Rs 176, or 0.51 percent, at Rs 34,094 per kg in a business volume of 23 lots.
Traders stated that the fall in silver prices in futures trade is largely in line with a weak trend towards the precious metals in global markets. Silver slumped 1.5 per cent to $13.97 an ounce in Singapore today, the lowest since August 2009.
A weakening trend in the global market amid growing confidence in the US Fed to raise interest by next month helped the dollar cement gains, eroding demand for the precious metals. A muted demand from jewellers and retailers also pulled down gold prices, Bullion traders said.
Gold retreated as much as one per cent to $1,067.58 an ounce in Singapore on Monday, while it ended 0.43% down at $1,077.20 in New York a day ago.
In the national capital, gold of 99.9 percent and 99.5 percent purity slumped by Rs 100 each to Rs 25,650 and Rs 25,500 per 10 grams. Gold had lost Rs 150 on Saturday. Sovereign, remained flat at Rs 22,200 per piece of eight grams in scattered deals.
By Premji
