Gold prices continued its downtrend for the third consecutive day on the bullion market here today on lack of demand from local investors coupled with stockists offerings triggered by fall in global markets.
Silver also declined further on lack of industrial demand.
Gold prices extended their losses in London as the firmer dollar curbed buying of the precious metals as a currency hedge.
Spot gold slid to USD 878.10/880.10 an ounce from USD 885.60 in late New York on Wednesday. The gold has fallen four per cent this week from more than three-month high of USD 915.30 hit on Monday. Silver spot also slipped to USD 11.73/11.79 an ounce from USD 11.95.
Gold futures fell in New York yesterday, retreating further from the USD 900 an ounce as the U.S. Dollar strengthened after the Federal Reserve said it's prepared to purchase long-term Treasury securities.
Moving to the domestic market, standard gold (99.5 purity) dropped further by Rs 125 per ten grams to Rs 13,740 from Rs 13,865 yesterday.
Pure gold (99.9 purity) also closed by a similarly margin to Rs 13,805 per ten grams from Rs 13,930 yesterday.
Silver ready (.999 fineness) fell by Rs 225 per kilo to Rs 19,220 from Rs 19,445.
