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Gold loses sheen, down Rs 80 on weak trend overseas

Gold prices fell by Rs 80 to Rs 32,610 per 10 grams at the bullion market Tuesday due to easing demand from local jewellers as well as retailers amid weak trend overseas.

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Gold prices fell by Rs 80 to Rs 32,610 per 10 grams at the bullion market Tuesday due to easing demand from local jewellers as well as retailers amid weak trend overseas.

Silver followed suit and dropped by Rs 240 to Rs 39,300 per kg on poor offtake by industrial units.

Traders said the slide in gold price was attributed to absence of follow up buying support post 'Dhanteras' from jewellers and retailers coupled with a weak trend in global market.

Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in northern and western parts of India.

Globally, gold fell by 0.15 per cent to USD 1,229.30 an ounce in Singapore.
In the national capital, gold of 99.9 and 99.5 per cent purity traded lower by Rs 80 each to Rs 32,610 and Rs 32,460 per 10 grams respectively.

The precious metal had gained Rs 60 in the past two days on the back of pick up in demand on the occasion of 'Dhanteras'.

Sovereign gold, however, held steady at Rs 24,900 per piece of 8 grams.

In line with overall trend, silver ready fell by Rs 240 to Rs 39,300 per kg and weekly-based delivery by Rs 193 to Rs 38,444 per kg.

Silver coins, however, remained unalatered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

Meanwhile, Diwali shoppers bought 16 tons of gold worth Rs 5,250 crore on Monday at the time of going to press. Bullion traders said the sales figure stood at Rs 4,500 crore last year.

Experts say gold sale is being driven by consumers in recent times, with nearly 80 per cent of buyers going for wearable jewellery. The remaining sales happen in terms of gold coins and biscuits. Traders also linked the growing demand to the upcoming marriage season. Mumbai alone will see nearly 35,000 marriages, they said.

Saurabh Gadgil of PN Gadgil Jewelers said, "There has been 25 per cent growth in diamond sales over the last year and it is through organised jewellers. All this is happening as the gold market is currently bullish."

Experts say the rush for gold is riding on several factors. While the real estate market is heading south, extreme volatility rules the stock market. There are expectations that gold will give better returns, said an expert. Rural India too, market analysts say, is showing keenness to buy gold jewellery due to the availability of more disposable income. "Across the country, 15-20 per cent rise in the sale is recorded. Attractive discounts and other freebies are able to attract customers. They are clearly aware that gold will give better returns and it is the best hedge against other investment products for security purposes,'' said Surendra Mehta, national secretary, India Bullion and Jewellers Association.



 

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