Gold prices extend losses, sheds Rs 220 to Rs 31,710

Gold prices extended losses for the third straight day on Wednesday, dropping Rs 220 to Rs 31,710 per ten gram in the national capital, on sustained selling by stockists.

Traders said sluggish demand at current levels and a weakening global trend, as the dollar's rally curbed demand for the metal as an alternative investment, mainly kept pressure on gold prices.

Rising equity markets, luring investors to park funds into stock markets for quick gains, also reduced the gold demand, they said.

Gold of 99.9 and 99.5 per cent purity plunged by Rs 220 each to Rs 31,710 and Rs 31,510 per ten gram, respectively. It had lost Rs 640 in last two days. Sovereign, however, held steady at Rs 25,300 per piece of eight gram.

Silver ready, however, snapped two-day losing trend and gained Rs 510 to Rs 50,100 per kg on increased offtake by industrial units and coin makers. It had lost Rs 310 in the previous two sessions.

Silver coins spurted by Rs 1000 to Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces on upsurge in demand because silver coins normally used for pooja on Diwali festival.

Gold in New York, which normally sets price trend on the domestic front, fell by 0.5 per cent to $1,345.50 an ounce in last session.

With inputs from PTI