Gold sheds Rs 240 to Rs 22,230 on weak spot demand

Gold sheds Rs 240 to Rs 22,230 on weak spot demand
Press Trust of India / New Delhi May 14, 2011, 15:31 IST

Gold and silver fell today due to a weakening global trend and slackened spot demand. While gold declined by by Rs 240 to Rs 22,230 per 10 grams, silver took a plunge of Rs 540 to Rs 54,410 per kg.

Trading sentiments turned bearish as gold in global markets showed weakness due to a stronger dollar eroding appeal of the precious metal as an alternative asset.

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Gold in global markets, which normally sets a price trend on the domestic front, fell by $11.70 to $1,495.20 an ounce. In addition, lack of demand at spot markets despite the ongoing marriage season, also kept pressure on the prices, traders said.

On the domestic front, gold of 99.9 and 99.5% purity fell by Rs 240 each to Rs 22,230 and Rs 22,120 per 10 grams, respectively. It rose by Rs 300 in yesterday's trade. Sovereigns followed suit and declined by Rs 100 to Rs 18,400 per piece of eight grams.

In line with a general trend, silver ready dropped by Rs 540 to Rs 54,410 per kg. The metal had gained Rs 1,650 in last trading session. Silver-weekly-based delivery lost Rs 440 to Rs 53,810 per kg, after gaining Rs 1,950 in the previous session.

Silver coins also tumbled by Rs 1,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.