Bullion: Gold and silver prices continued to drift in a range-bound trade

Bullion: Gold and silver prices continued to drift in a range-bound trade during the week due to sluggish demand from jewellery stockists and retail investors on the back of global uncertainty.

Despite a better start, the yellow metal failed to maintain its momentum and succumbed to fag-end selling pressure from speculators reacting to global sell-off. Supported by good wedding seasonal offtake, the metal briefly reclaimed the important Rs 30,000 per 10 grams mark before sliding back. Silver also dropped sharply due to continued off-loading by traders coupled with reduced industrial demand. Globally, the shiny metal retreated from psychologically significant USD 1,300 an ounce following heavy unwinding of speculative positions by investors on easing of geopolitical tension in Ukraine as well as robust US economic data.

Dovish comments from the US Federal Reserve Chair Janet Yellen and sharp decline in US jobless claims also weighed on sentiment. The industrial metal also remained under selling pressure. In New York, gold for June delivery plunged to settle at USD 1,287.60 an ounce from USD 1,302.90 last weekend. Silver for July contract fell to USD 19.12 an ounce as compared to USD 19.55.