Silver declines to Rs54,000 on global cues, gold sheds by Rs150

Silver continued to slide for the third straight day by losing Rs 2,000 to Rs 54,000 per kg today on stockists selling amid reduced offtake by industrial units in tandem with a weakening global trend.

Gold also declined by Rs 150 to Rs 22,670 per 10 grams due to fall in local demand at prevailing high levels and weak overseas cues.

However, silver coins attracted selective buying in view of the ongoing wedding season and surged by Rs 6,000 to Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces.

Analysts said trading sentiments turned bearish as precious metals declined in London on speculation that some investors will sell the metal after prices climbed near record level.

Gold in global markets, which normally sets a price trend on the domestic front, fell by $2 to $1,531.57 an ounce and silver declined by 1.5% to $35.63 an ounce.

On the domestic front, silver ready remained under selling pressure and tumbled by Rs 2,000 to Rs 54,000 per kg, and weekly-based delivery shed Rs 2,350 to Rs 53,650 per kg.

The white metal lost Rs 2,300 during the last two trading sessions.

 In line with a general weakening trend, the gold of 99.9% and 99.5% purity fell by Rs 150 each to Rs 22,670 and Rs 22,550 per 10 grams, respectively. The yellow metal had gained Rs 120 yesterday.

Sovereigns remained flat at Rs 18,700 per piece of eight grams.