Gold extend losses, tumble by Rs 280 on global cues

New Delhi, Aug 7. Gold prices fell for the third straight day by losing Rs 280 to Rs 28,340 per ten grams in the national caital today on heavy selling by stockists driven by a weak global trend. Silver also fell by Rs 695 to Rs 41,410 per kg on poor offtake by industrial units and coin makers. Sentiment turned bearish after gold fell in overseas markets to a lowest level in three-week on speculation that the Federal Reserve will start to reduce bond purchases by the end of the year as the US economy improves, traders said. Gold in Singapore, which normally set price trend on the domestic front, fell by 0.8 per cent to 1,273.55 dollar an ounce, the lowest since July 17 and silver by 0.8 per cent to 19.37 dollar an ounce. Besides, sluggish demand due to off marriage and festival season further dampened the sentiment. On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 280 each to Rs 28,340 and Rs 28,140 per ten grams respectively.It had lost Rs 180 in last two trade. Sovereign, however, held steady at Rs 24,400 per piece of eight gram in scattered deals. In a similar fashion, silver ready fell by Rs 695 to Rs 41,410 per kg and weekly-based delivery by Rs 605 to Rs 41,280 per kg respectively. On the other hand, silver coins maintained its steady trend at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.