Both the precious metals, gold and silver, tumbled here on Thursday on increased selling by stockists, following sluggish demand amid a weak global trend. While gold dropped by Rs 270 to Rs 31,410 per 10 grams, silver lost Rs 800 to Rs 61,200 per kg on heavy selling by stockists and industrial units.
Trading sentiment turned bearish on stockists clearing their holdings on ending of the current marriage season from December 15 amid a weakening trend in overseas markets. They said the precious metals in international markets declined to a one-week low as a rally to the highest level this month prompted some investors to sell the metal amid concern about the US budget deadlock.
The wedding season, which started in September and peaked last month, continues until early January. Gold is an essential gift item during this season in India, the world's largest buyer of the metal.
The Federal Reserve announced the plan to purchase $45 billion in longer-term Treasuries each month on top of the $40 billion monthly buying of mortgage-backed securities, as expected, but set inflation and unemployment threshold for exit strategy.
Silver for March traded 1.59 percent lower at 62,218 rupees per kg, after hitting a low of 62,028 rupees, a level not seen after December 7.
Trading sentiment turned bearish on stockists clearing their holdings on ending of the current marriage season from December 15 amid a weakening trend in overseas markets. They said the precious metals in international markets declined to a one-week low as a rally to the highest level this month prompted some investors to sell the metal amid concern about the US budget deadlock.
The wedding season, which started in September and peaked last month, continues until early January. Gold is an essential gift item during this season in India, the world's largest buyer of the metal.
The Federal Reserve announced the plan to purchase $45 billion in longer-term Treasuries each month on top of the $40 billion monthly buying of mortgage-backed securities, as expected, but set inflation and unemployment threshold for exit strategy.
Silver for March traded 1.59 percent lower at 62,218 rupees per kg, after hitting a low of 62,028 rupees, a level not seen after December 7.
Gold Trend
The yellow metal touched an intra-day high of $1,723.01/oz and closed at $1,711.6 on Wednesday. On the MCX, Gold February contract ended 0.5 percent higher taking cues from strength in the spot gold prices. However, appreciation in the currency capped sharp gains in the prices on MCX. Gold prices on the MCX closed at Rs. 31,397/10 gms on Wednesday after touching an intra-day high of Rs. 31,490/ 10gms.