Gold dips below 22,000 level after 10 weeks, silver sheds Rs350

Gold prices dipped below Rs22,000 per 10 grams after 10 weeks in the national capital today on sustained selling by stockists on the back of a weak trend overseas.

Gold declined by Rs230 to Rs21,820 per 10 grams, a level last seen on April 19. Silver fell by Rs350 to Rs51,500 per kg.

Dealers said that trading sentiment remained bearish after gold fell in the global markets on easing sovereign debt crisis in Greece, curbing demand for the precious metals as an alternative investment.

Reduced offtake by retailers and jewellery manufacturers at existing higher levels further fuelled the downtrend, they added.

Gold fell by $20.20 to $1,482.60 an ounce and silver by 3.2% to $33.70 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity fell by Rs230 each to Rs21,820 and Rs21,700 per 10 grams, respectively.

The metal had lost Rs270 yesterday.

Sovereign remained unchanged at Rs18,650 per 10 grams in restricted activity.

Silver ready and weekly-based delivery dropped by Rs350 each to Rs51,500 per kg, respectively. Silver coins declined by Rs500 to Rs56,000 for buying and Rs57,000 for selling of 100 pieces.