Gold snaps 6-day rally on muted demand, global cues weigh

Wednesday, Jun 15, 2016,15:28 IST By Metrovaartha A A A

New Delhi | Gold prices slipped by Rs 130 to Rs 29,670 per ten gram, snapping a six-day winning streak at the bullion market today, as demand from jewellers dried up at prevailing levels amid weak global cues.

However, silver strengthened Rs 90 to Rs 41,350 per kg on increased offtake by industrial units and coin makers. Marketmen said considerable fall in demand from jewellers and retailers at existing level and a weak trend overseas, mainly kept pressure on gold prices.

Globally, gold traded lower by 0.10 per cent at USD 1,284.20 an ounce in Singapore as market awaited the US Federal Reserve’s policy statement amid concerns about a potential British exit from the European Union. In the national capital, gold of 99.9 and 99.5 per cent purity drifted lower by Rs 130 each to Rs 29,670 and Rs 29,520 per ten grams, respectively.

The metal had gained Rs 770 in the previous six sessions. Sovereign, however, found scattered buying support from retailers and edged up Rs 100 to Rs 23,100 per piece of eight gram.

On the other hand, silver ready maintained its yesterday’s strength and advanced by another Rs 90 to Rs 41,350 per kg while weekly-based delivery traded higher by Rs 325 to Rs 41,510 per kg. Silver coins, however, held steady at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.