Gold declines to two-week low despite festive season
Gold continued its fall and plunged to two-week low at the domestic bullion market in Mumbai on the back of heavy unwinding from jewellery stockists and speculators.business Updated: Nov 03, 2013 00:04 IST
Gold continued its fall and plunged to two-week low at the domestic bullion market in Mumbai on the back of heavy unwinding from jewellery stockists and speculators.
On the contrary, silver regained some lost ground on renewed offtake by industrial units and coin makers.
Despite the ongoing biggest gold-buying festival - Diwali - retail consumers' keen appetite for yellow-metal appears to have subsided, as they prefer to stay on the sidelines, expecting further price correction, bullion traders said.
The shiny metal has lost nearly 5% this week.
Standard gold of 99.5% purity dropped by Rs 140 to finish at Rs 30,370 per 10 grams from Friday's closing level of Rs 30,510.
Pure gold of 99.9% purity shed Rs 165 to close at Rs 30,520 per 10 grams from Rs 30,685.
Silver ready (.999 fineness), however, recouped by a hefty Rs 475 to conclude at Rs 49,795 per kilo as compared to Rs 49,320 on Friday.
On the global front, gold slumped further on investor concerns after positive US manufacturing data and fall in jobless claims raised worries that the Federal Reserve will scale back its bullion-friendly stimulus programs in the coming months.
December gold contract lost $10.50 to settle at $1,313.20 an ounce on the Comex division of the NYMEX late Friday and silver eased to end at $21.84 an ounce.