Gold continues its losing streak for second straight week

Mumbai: Gold continued its losing streak for the second straight week at the domestic bullion market, largely in-tandem with a weakening trend overseas amid poor demand from stockists and jewellers.

Traders said a weak trend overseas as the US dollar grew in strength and lower local buying on expectation of further fall mainly dampened the sentiment. The yellow-metal lost a whopping 0.26 per cent in its two-week downslide.

Elsewhere, silver too slipped for the week owing to lacklustre industrial demand and is poised for its first weekly decline in three. In worldwide trade, Gold futures finished modestly lower as investors booked some of the yellow metals strong pre-Thanksgiving gain.

The commodity unhinged from its typically relationship with the dollar, which extended its slump in the wake of Federal Reserve signals for a cautious approach to interest-rate tightening next year.

Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding nonyielding bullion. December gold fell USD 4.90, or 0.4 per cent, to settle at USD 1,287.30 an ounce.

After an up-and-down week, gold logged a roughly 0.7 per cent weekly decline and its first weekly fall of the past three. December silver fell 12 cents, or 0.7 per cent, to settle at USD 16.992 an ounce.

For the week, the metal declined about 2.2 per cent, representing its first weekly drop in the last three. In the New York Comex trade, gold for December delivery dropped to settle at USD 1,287.30 an ounce compared to last weekend's close of USD 1,296.50, while December silver contract fell to end at USD 16.992 an ounce from USD 17.373.

On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,640 per 10 grams from last Friday's closing level of Rs 29,460 and hovered in a range of Rs 29,520 and Rs 29,340 before settling at Rs 29,440, revealing a loss of Rs 20 per 10 grams, or 0.06 per cent.

Pure gold (99.9 purity) also commenced higher at Rs 29,790 per 10 grams compared to preceding weekend's level of Rs 29,610 and moved in a range of Rs 29,670 and Rs 29,490 before ending at 29,590, revealing a fall of Rs 20 per 10 grams, or 0.06 per cent.

Silver ready (.999 fineness) opened positive at Rs 39,830 per kilogram from last Friday's closing level of Rs 39,590 and hovered between Rs 39,500 and Rs 39,250 before finish at Rs 39,335, showing a loss of Rs 255 per kilo, or 0.64 per cent.