Gold extends losses on sustained selling, global cues

New Delhi, Apr 1. Extending losses for the third straight day, gold prices fell by Rs 40 to Rs 29,260 per ten gram in the national capital today on sustained offerings by stockists on the back of weak global trend. However, silver snapped its two-day weak trend and gained Rs 100 to Rs 43,500 per kg on increased offtake by industrial units and coin makers. The white metal had lost Rs 139 in the previous two sessions. Traders said sustained offerings by stockists on the back of weak global trend, as investors weighed the outlook for the Fed's monetary policy after improving economic growth, mainly reduced demand for gold as an alternate investment. Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.5 per cent to USD 1,278.20 an ounce, the lowest since February 11. Investors diverting their funds from weakening bullion to equity markets, which surged to record high, also influenced the sentiment to some extent, they said. On the domestic front, gold of 99.9 and 99.5 per cent purity remained under selling pressure and declined by Rs 40 each to Rs 29,260 and Rs 29,060 per ten gram respectively. It had shed Rs 55 in last two days. Meanwhile, sovereign recovered by Rs 200 to Rs 24,900 per piece of eight gram on select buying. On the other hand, silver ready recovered by Rs 100 to Rs 43,500 per kg while weekly-based delivery lost Rs 620 at Rs 42,155 per kg on lack of speculators buying support. Silver coins spurted by Rs 2,000 to Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces on upsurge in demand at existing lower levels.