Gold ends flat; silver sheds Rs 500

New Delhi: Gold prices held steady at Rs 31,480 per 10 grams in the bullion market on Monday on thin trade, while silver prices fell by Rs 500 to Rs 60,500 per kg on stockists selling amid a weak global trend.

Silver coins dipped by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

Traders said sentiment turned bearish after gold dropped to a one-week low in global markets on speculation that the eurozone debt crisis might continue to damp demand for raw materials.

In Singapore, gold fell 0.8 percent to USD 1,766.80 an ounce, the lowest level since October 1, while silver slumped 2.2 percent to USD 33.77 an ounce.

Stockists selling on the back of sluggish demand at prevailing higher levels also influenced the trading sentiment, traders said.

On the domestic front, silver ready fell by Rs 500 to Rs 60,500 per kg and weekly-based delivery by Rs 595 to Rs 61,200 per kg.

Gold of 99.9 and 99.5 percent purity remained steady at Rs 31,480 and Rs 31,280 per 10 grams, respectively.

Sovereign also remained unchanged at Rs 25,400 per kg on restricted deals.

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Gold declines from highest since Nov

London: Gold on Monday fell as some investors sold the metal after its rally to the highest in almost 11 months and as a stronger dollar curbed demand for an alternative investment.

    

The precious metal fell 0.7 percent to USD 1,767.76 an ounce and silver by 1.9 percent to USD 33.85 an ounce.     

The dollar climbed versus the euro as European finance ministers meet in Luxembourg on Monday, while German Chancellor Angela Merkel visits Greece on Tuesday for the first time since the crisis erupted.

     

Gold reached USD 1,796.10 an ounce on October 5, the highest since November 14, before a report showed the US unemployment rate fell to the lowest level since January, 2009.

    

Holdings in gold-backed exchange-traded products rose 4.1 tonnes to a record 2,569.6 tonnes on October 5.

    

Finance ministers meeting on Monday are likely to make a positive statement on Greece’s progress toward reaching austerity targets needed to pave the way for the nation’s next bailout payment, European Union Commissioner for Economic and Monetary Affairs said. 

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