Millennium Post

Gold, silver prices dip on low demand and global cues

Gold prices dropped at the domestic bullion market on Friday amid weak demand and fall in prices in the international markets. Silver too fell back on subdued industrial buying.

Standard gold of 99.5 per cent purity was down by Rs 190 to end at Rs 27,670 per 10 gm from Thursday’s closing level of Rs 27,860. Pure gold of 99.9 per cent purity lost by Rs 185 to finish at Rs 27,810 per 10 gm from Rs 27,995. Silver ready (.999 fineness) declined by Rs 275 to close at Rs 44,335 per kg compared to previous closing of Rs 44,610.

In the international markets, the yellow metal on Friday declined for the second day as investors cut holdings of the metal amid speculation the Federal Reserve will curb stimulus. Gold lost 0.5 per cent to $1,379 an ounce. Prices are down 0.3 per cent this week. Silver too fell 0.7 per cent to $21.71 an ounce. US reports show that retail sales rose more than forecast in May and jobless claims dropped last week. Fed

Chairman Ben Bernanke said the it could reduce its $85 billion monthly bond purchases if the economy improves sustainability.
Gold exchange-traded product holdings declined to the lowest in more than two years. Holdings in ETPs fell 6.7 tonnes to 2,118 tonnes, the lowest since March 2011. Prices slid 18 per cent this year as an improving US economy increased speculation the Fed may taper quantitative- easing measures that helped bullion cap a 12-year bull run in 2012. The Bank of Japan this week refrained from adding stimulus or expanding its toolkit for tackling volatility in bonds.
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