New Delhi: Gold on Wednesday hit a seven-week low by losing Rs 280 to Rs 27,890 per 10 grams, due to lack of buying support from stockists in tandem with a weak trend overseas.
After losing Rs 95 in the previous session, gold tumbled to a level last seen on January 25 on lower offtake on expectations of more correction in prices.
Silver followed suit and declined for the third straight session day by losing Rs 500 to Rs 57,000 per kg on reduced offtake by industrial units amid a weak global cues.
Selling pressure in the precious metals gathered momentum after gold in overseas markets dropped to near a seven-week low, as the Federal Reserve refrained from taking new steps to boost the US economy after raising their assessment of it, strengthening the dollar.
In Singapore, gold fell by 0.2 percent to USD 1,670.90 an ounce and silver by 1.2 percent to a one-week low of USD 33 an ounce.
In addition, sluggish local demand at prevailing higher levels and some investors seen shifting their funds to rising equity also dampened the trading sentiment.
On the domestic front, gold of 99.9 and 99.5 percent purity fell further by Rs 280 each to Rs 27,890 and Rs 27,750 per 10 grams, respectively. Sovereigns followed suit and lost Rs 100 to Rs 23,400 per piece of eight grams.
In a similar fashion, silver ready remained under selling pressure and lost Rs 500 to Rs 57,000 per kg and weekly-based delivery by Rs 510 to Rs 57,940 per kg. The metal had lost Rs 700 in the last two trading sessions.
Silver coins also dropped by Rs 2,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.