Gold slides further on weak global cues, dollar gains

Gold fell by Rs 60 to Rs 17,300 per ten gram in the bullion market today, extending losses for the second straight day, on sustained selling by stockists amid a weakening global trend. Trading sentiment in gold remained bearish as dollar rebounded, eroding demand for the metal as an alternate asset.

Gold in Asia fell by 0.1 per cent to 1,127.24 dollar an ounce. Marketmen said besides a weakening global trend, subdued demand at current high prices also led to fall in both gold and silver prices.

Investors also resorted to selling to pay losses in the falling equity markets, they said. Standard gold and ornaments fell by Rs 60 each to Rs 17,300 and Rs 17,150 per ten gram respectively while sovereign held steady at Rs 14,100 per piece of eight gram.

Silver ready plunged by Rs 330 to Rs 27,750 per kg and weekly-based delivery by Rs 280 to Rs 27,400 per kg. Silver coins fell by Rs 200 to Rs 33,500 for buying and Rs 33,600 for selling of 100 pieces.