Gold Extends Fall On Weak Demand; Silver Recovers As Industrial Offtake Continues

New Delhi: Gold continued to fall for the fourth straight day at the domestic bullion market on Saturday and lost Rs 80 to trade at over three-month low of Rs 30,240 per 10 grams owing to slackened demand from jewelers even as the metal rose overseas. Silver, however, staged a rebound by gaining Rs 370 to Rs 42,300 per kg on increased off take by industrial units and coin makers.

Market men said tepid demand from jewelers and retailers at domestic spot market at prevailing levels mainly kept pressure on gold prices but a firm trend overseas capped the losses.

Tepid demand from jewelers and retailers at domestic spot market at prevailing levels mainly kept pressure on gold prices but a firm trend overseas capped the losses. Increased off take by industrial units and coin makers are supporting silver prices in the bullion.

Globally, gold rose 0.19 per cent to USD 1,257.60 an ounce in New York yesterday. Silver was up 1.39 per cent at $17.53 an ounce. In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 80 each to Rs 30,240 and Rs 30,090 per 10 grams, respectively.

The precious metal had lost Rs 930 in previous three days. Sovereign declined by Rs 100 to Rs 24,300 per piece of eight grams.

On the other hand, silver ready rebounded by Rs 370 to Rs 42,300 per kg and weekly-based delivery by Rs 290 to Rs 41,865 per kg. Silver coins also spurted by Rs 1,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

Foreign exchange reserves over $371Bn

India's foreign exchange (forex) reserves went up to $371.99 billion as on September 30, the Reserve Bank of India (RBI) announced. According to data released by the RBI on Friday, the reserves stood at around $371.99 billion as on September 30, as against $370.76 billion as on September 23.

On September 30, the foreign currency assets stood at $346.71 billion, gold at $21.40 billion, special drawing rights at $1.48 billion and the reserve position in the International Monetary Fund (IMF) at $2.38 billion.

The reserves as on September 23 comprised of foreign currency assets at $345.24 billion, gold at $21.64 billion, special drawing rights at $1.49 billion and the reserve position in IMF at $2.39 billion.

Source: PTI/ IANS