Zee Media Bureau
New Delhi: Falling for the third straight week, gold prices dipped below the Rs 27,000-mark to end at Rs 26,950 per ten gram at the bullion market, largely in tune with a weakening global trend where the precious metal fell to an 11-week low.
Further, falling demand from jewellers at spot markets due to off season for wedding dampened the mood.
Traders said weakening global trend after the US economy added more jobs in May than forecast -- boosting the case for the Federal Reserve to raise US interest rates -- curbed demand for the precious metal as a safe-haven, keeping pressure on prices.
Gold in New York, which normally set price trend on the domestic front, settled at USD 1,168.10 an ounce after dipping to USD 1,162.10, the lowest since March 19 and silver fell to USD 15.98 an ounce after touching USD 15.92, the lowest since May 1.
Meanwhile, the government reduced the import tariff value of gold to USD 385 per 10 grams.
The import tariff on silver has also been cut to USD 544 per kg.
During last fortnight, the tariff value on imported gold was USD 398 per 10 grams and on silver, at USD 567 per kg.
In the national capital, gold of 99.9 and 99.5 percent purity commenced the week lower at Rs 27,225 and Rs 27,075 but recovered quickly to Rs 27,340 and Rs 27,190 per ten gram respectively.
Later, on weak global cues, it fell back to close at six-week low of Rs 26,950 and Rs 26,800 per ten gram, showing a fall of Rs 380 each.
Sovereign, after remaining steady for the major part of week at Rs 23,700 on little doing, met with some selling and ended the week Rs 100 down at Rs 23,600 per piece of eight gram.
In volatile movements, silver ready moved both ways on alternate bouts of buying and selling and ended the week lower by Rs 1,225 to Rs 37,350 per kg, while weekly-based delivery closed down by Rs 1,340 to Rs 37,010 per kg.
Silver coins nosedived by Rs 2,000 to Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.
