Gold falls to Rs21,095/10 gm on reduced offtake, global cues

Both the precious metals, gold and silver, fell on the bullion market today, due to reduced offtake at existing high levels and sustained selling by stockists on global cues. While gold fell by Rs 40 to Rs21,095 per 10 grams, silver lost Rs350 to Rs55,350 per kg.

Trading sentiments turned bearish for the yellow metal after it declined in international markets, as signs of improving US economy curbed the precious metal's appeal as an alternative investment.

Some investors felt last week's rally in precious metals to a record was overdone and booked profits to park their funds in rising equities.

Gold in global markets, which normally sets a price trend on the domestic front, fell by 0.4% to $1,424.20 an ounce and silver fell by 0.8% to $37.04 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity declined by Rs40 each to Rs21,095 and Rs20,975 per 10 grams, respectively. Sovereigns, however, held steady at Rs17,500 per piece of eight grams in limited deals.

In line with a general weakening trend, silver ready fell by Rs350 to Rs55,350 per kg and weekly-based delivery by Rs240 to Rs55,190 per kg. Silver coins also lost Rs500 to Rs59,000 for buying and Rs59,500 for selling of 100 pieces.