Bullion: Gold prices dropped to hit almost one-month low of Rs 28,100 per 10 grams at the bullion market during the week on selling by stockists amid weak cues from global markets. Silver also ended lower on reduced offtake by industrial units and coin makers.
Traders said stockists selling, triggered by a weak global trend on speculation that US interest rates are set to increase, strengthening the dollar, and reducing appeal of precious metal, mainly pulled down gold prices. Gold in global markets, which normally sets price trend on the domestic front, slid two per cent this week at USD 1,280.20 an ounce. Appreciating rupee against the dollar that made the import of precious metals cheaper and diversion of funds towards rising equity market also dampened the sentiment, they said. Meanwhile, at forex market, the rupee ended at over three-week high of 60.47 against the American currency.
In the national capital, gold of 99.9 and 99.5 per cent purity started lower at Rs 28,600 and Rs 28,400 per 10 grams and on day-to-day sustained selling by stockists it fell further to close at Rs 28,100 and Rs 27,900 per 10 grams respectively, a level last seen on July 25. The yellow metal showed a fall of Rs 600 each from the previous week's close. Sovereign followed suit and lost Rs 200 at Rs 24,600 per piece of eight grams. In line with a general weak trend, silver ready ended down by Rs 925 to Rs 42,600 per kg and weekly-based delivery by Rs 1,305 to Rs 41,955 per kg. Silver coins also tumbled by Rs 3,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.
