Gold losses sheen, hits six-week low on global cues

Continuing its losing falling streak for the second straight day, gold prices slumped by another Rs 370 to trade at a six-week low of Rs 29,200 per ten grams at the bullion market on Wednesday in tandem with a weakening global trend amid muted demand from jewellers at spot market.

Silver too remained under selling pressure and shed Rs 50 at Rs 39,450 per kg.

Sentiment dampened largely in tune with a weak trend overseas where gold had a fifth straight decline, the longest slump since November, on speculation that the Federal Reserve will raise interest rates as early as next month strengthened the dollar, denting demand for the metal as an alternative asset, bullion traders said.

Globally, gold tumbled $21.38 or 1.71% to close at $1,226.90 an ounce in New York in Wednesday's trade.

Furthermore, fading demand from jewellers and retailers at domestic spot market fuelled the downward trend, they said.

In the national capital, gold of 99.9 and 99.5% purity plunged by Rs 370 each to Rs 29,200 and Rs 29,050 per ten grams, respectively, a level last seen on April 13.
Sovereign also declined by Rs 100 at Rs 23,000 per piece of eight grams.

Tracking gold, silver ready weakened by Rs 50 to Rs 39,450 per kg and weekly-based delivery by Rs 250 to Rs 39,215 per kg.

Silver coins, however, continued to trade at previous levels of Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces.