Gold declines to Rs21,065 on global cues; silver up by Rs75

Gold declined by Rs90 to Rs21,065 per 10 grams today, due to fall in demand at existing high levels, amid a weakening global trend. Silver, however, recovered by Rs75 to Rs56,400 per kg on fresh buying support.

Trading sentiments for the yellow metal turned bearish as it declined the most in two weeks in global market on speculation that the Federal Reserve will tighten US monetary policy, curbing demand for the precious metal as an alternative investments.

Gold in global markets, which normally sets price trend on the domestic front, dropped by $11, or 0.8%, to $1,428.90 an ounce, the biggest drop since March 15.

However, silver prices recovered on buying support by jewellers for the upcoming marriage and festival season of Navratras. Fresh buying by industrial units also supported the uptrend in the white metal.

On the domestic front, silver ready rose by Rs75 to Rs56,400 per kg and weekly-based delivery by Rs25 to Rs55,920 per kg, while silver coins held steady at Rs61,500 for buying and Rs62,000 for selling of 100 pieces.

On the other hand, gold of 99.9 and 99.5% purity declined by Rs 90 each to Rs21,065 and Rs20,945 per 10 grams, respectively. Sovereigns remained flat at Rs17,500 per piece of eight grams.