Gold declines to Rs22,745 on global cues, silver sheds Rs1,300

Snapping a three-day rally, both gold and silver fell on reduced offtake at existing high levels amid a weakening global trend. While silver shed Rs1,300 to Rs57,200 per kg, gold lost Rs75 to Rs22,745 per 10 grams.

Trading sentiments turned bearish after gold declined in New York as speculations that China will increase its purchases of European bonds to ease the region's debt crisis, reducing demand for the metal as a protection of wealth.

Also, fall in domestic demand at existing high levels influenced the trading sentiments to some extent, they added.

Gold in global markets, which normally set price trend on the domestic front, fell by $6.40 an ounce and silver declined by 1.87% to $37.19 an ounce.

On the domestic front, silver ready slipped by Rs1,300 to Rs57,200 per kg. It had gained Rs5,300 during the three previous sessions.

Silver weekly-based delivery followed suit and lost Rs1,300 to Rs57,200 per kg, after gaining Rs5,450 in the last three sessions.

However, silver coins remained in demand due to the ongoing marriage season and advanced by Rs1,000 to Rs66,000 for buying and Rs67,000 for selling of 100 pieces.

In line with a general weakening trend, gold of 99.9% and 99.5% purity declined by Rs75 each to Rs22,745 and Rs22,625 per 10 grams, respectively. The metal had gained Rs240 in the previous three sessions.

Sovereigns remained steady at Rs18,650 per piece of eight grams on lack of follow-up support at higher rates.