MUMBAI: Prices of gold declined further by Rs 45 per 10 grams to Rs 14,485 on the bullion market here today in the absence of local demand amid
Silver also dropped due to lack of demand from industrial users following weak global cues.
Gold futures retreated in New York to the lowest level in near six weeks, as falling oil prices and a stronger dollar reduced the precious metal's appeal as a hedge against inflation.
Crude oil slumped nearly 4 per cent to the lowest level in two weeks, after the World Bank predicted that the global economy will shrink 2.9 per cent this year, a steeper fall than the 1.7 per cent contraction as it predicated in March 2009.
On the Comex Division of the New York Mercantile Exchange, gold August delivery fell by USD 15.20 to end at USD 921 an ounce. July silver also sank 49.7 cents to USD 13.703 an ounce.
Turning to the domestic market, standard gold (99.5 purity) declined by Rs 45 per ten grams to Rs 14,485.
Pure gold (99.9 purity) also moved down with a similar margin of Rs 45 per 10 grams to Rs 14,550 against Rs 14,595 previously. Silver ready (.999 fineness) fell by Rs 100 per kilo to Rs 22,550 from 22,650 yesterday.
