Silver falls further to Rs53,200, gold down by Rs90

Silver fell further for the second straight session today and fell by Rs100 to Rs53,200 per kg due to sustained selling by stockists in tandem with a weakening global trend. Gold also fell by Rs90 to Rs22,580 per 10 grams on sluggish demand at existing high levels.

Trading sentiments turned bearish after gold declined in global markets as Europe's sovereign-debt crisis escalated, triggering a sell off in commodities, including oil and base metals, including precious metals.

Besides, low demand at existing high levels further dampened the trading sentiments.

In global markets, gold fell by 0.3% to $1,507.98 an ounce and silver by 1% to $34.73 an ounce.

On the domestic front, silver ready fell by Rs100 to Rs53,200 per kg. It had lost Rs900 in the last trading session. Silver weekly-based lost Rs550 to Rs53,050 per kg. Silver coins followed suit and tumbled by Rs1,000 to Rs59,000 for buying and Rs60,000 for selling of 100 pieces.

Similarly, gold of 99.9% and 99.5% purity declined by Rs90 each to Rs22,580 and Rs22,460 per 10 grams. The metal had gained Rs300 in the previous session. Sovereigns also came under selling pressure and shed Rs50 to Rs18,550 per piece of eight grams.