Gold, silver slip from record level on scrap sale

Gold and silver prices on Wednesday dropped from their record highs on emergence of scrap ornament sale by retailers at attractive higher levels amid weakening global trend.

While gold dropped Rs 330 to Rs 20,720 per ten grams, silver plummeted by Rs 1,300 to Rs 44,200 per kg.

Analysts said trading sentiment turned weak, as retailers sold scrap jewllery at existing higher levels and waited for an appropriate chance to buy new ornaments.

The buying trend further weakened following reports of decline in gold and silver price in global markets on profit-booking and a firming dollar that reduced appeal of precious metals as an alternative asset.

Gold in global markets, which set a price trend on the domestic front here, fell one per cent to $1,388.45 an ounce. The metal on Tuesday touched an all-time high of $1,432.50.

On the domestic front, gold of 99.9 per cent purity tumbled Rs 330 to Rs 20,720 per ten gram. The metal had climbed to all-time high of Rs 21,050 on Tuesday.

Similarly, gold of 99.5 per cent purity fell Rs 280 to Rs 20,650 per ten gram. Sovereign followed suit and fell Rs 50 to Rs 16,750 per piece of eight gram.

Silver ready also fell Rs 1,300 to Rs 44,200 per kg on heavy selling by stockists. It had surged to a record Rs 45,500 per kg in the previous session.

Silver weekly-based delivery also plunged Rs 1,320 to Rs 43,660 per kg on lack of speculator's support amid a weakening trend in overseas markets and futures trading here.

Silver coins, too, met with resistance at higher levels and lost Rs 500 to Rs 48,500 for buying and Rs 48,600 for selling of 100 pieces.