Gold prices dip for another week

NEW DELHI: The slide in gold prices continued for yet another week, with the yellow metal losing Rs 600 to close at Rs 33,170 per ten grams at the bullion market, tracking a weak trend overseas amid tepid demand from local jewellers.

Silver followed suit and ended lower due to reduced offtake by industrial units and coin makers.

Market remained closed on Monday on account of Mahashivratri.

Traders said sentiment remained downbeat on a weak trend overseas and strengthening of rupee against the dollar, making imports of gold cheaper.

Meanwhile, the rupee ended the week at 70.14 against the US dollar at the interbank forex market.

Globally, gold ended the week higher at USD 1,298.70 an ounce and silver at USD 15.31 an ounce in New York.

Besides, diversion of funds to the rising equity market and fading demand from local jewellers and retailers at the end of the wedding season too fuelled the downtrend.

In the national capital, gold of 99.9 per cent purity commenced the week on a weak note at Rs 33,450 and slipped further to hit a low of 33,070 per 10 grams, largely in sync with weak global cues and tepid demand from local jewellers.

Thereafter, it staged a partial recovery after gold rebounded from multi-week lows in the global market on safe haven demand as investors fretted over increased signs of a global slowdown. It finally ended the week at Rs 33,170, showing a hefty fall of Rs 600.

Gold of 99.5 per cent purity too fell by the same amount to end the week at Rs 33,000 per 10 grams.

Sovereign, however, moved in a narrow range in limited deals and settled Rs 100 lower at Rs 26,400 per piece of eight grams.

Tracking the movement in gold, silver too opened with sustained weakness at Rs 39,500 per kg and dropped further to a low of Rs 38,980 before settling at Rs 39,900, showing a marginal fall of Rs 50.

However, silver weekly-based delivery finished higher by Rs 428 to Rs 38,728 per kg after touching a low of Rs 38,202 during the week.

Silver coins too plunged by Rs 1,000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces in limited deals.