Gold continued its slide for yet another week

Mumbai: Gold continued its slide for yet another week with prices cracking below the Rs 28,000-mark to end at a 10-month low of Rs 27,930 per 10 grams at the bullion market largely in-tandem with a weak trend overseas amid fall in demand from local jewellers in view of prevailing cash crunch in the financial system after demonetisation. Silver in volatile movements on buying or selling, ended lower by Rs 1,600 to Rs 39,650 per kg.

Bullion traders said sentiment remained weak largely in tandem with a weak global trend where gold slipped to a 10-month low as the Federal Reserve signalled it will raise interest rates faster than previously expected, boosting the dollar and eroded the demand for the precious metal as a safe-haven.

Globally, gold ended the week lower at USD 1,134.60 an ounce and silver closed at USD 16.07 an ounce in New York. Besides, considerable fall in demand by over 80 per cent from jewellers and retailers due to prevailing cash crunch in the market following the government's move banning 500 and 1,000 rupee notes last month in a bid to flush out black money, weighed on gold prices.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced higher at Rs 28,550 and Rs 28,400 per ten grams on scattered buying support. Later, it met with selling, triggered by a weak trend overseas and plunged to dip below the Rs 28,000-mark to close at 10-month low at Rs 27,930 and Rs 27,780 per ten grams, respectively, showing a significant fall of Rs 520 each.

Sovereign also drifted lower by Rs 200 at Rs 24,000 per piece of eight grams. In volatile movements, on alternate bouts of buying or selling, silver ready ended the week down by Rs 1,600 to Rs 39,650 per kg, while weekly-based delivery by Rs 1,525 to Rs 39,695 per kg. Silver coins, plummeted by Rs 2,000 to Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.