Mumbai: Tracking a weak cues from overseas market and falling demand from local jewellers, gold lost its glitter during the week and slipped by Rs 175 to close at Rs 29,315 per ten grams at the bullion market in a truncated week.
Traders said sentiment turned bearish on the back of reduced global trend. Besides, fading demand from local jewellers and retailers at the domestic market, weighed on the gold prices.
Investors seeking a safe place to store assets amid trade disputes and a Turkish currency crisis have preferred the dollar to gold, undermining the reputation of bullion as a safe haven.
Silver slumped by Rs 950 per kg to settle below the psychological Rs 37,000-mark at Rs 36,875 following poor offtake by industrial units and coin makers. In worldwide trade, New York Gold prices settled higher yesterday, but posted a nearly 2.9 per cent weekly retreat, the largest such drop since early May of last year.
The precious metal edged up in the wake of losses over the past two sessions as the leading dollar index also churned in the red. The buck, which was currently down slightly for the week but up 4.5 per cent year to date, has been the key driver for the precious metals.
A firmer greenback, which makes buying bullion more expensive to investors using another currency, remains near a roughly 14-month peak. December gold rose settle at USD 1,184.20 an ounce.
Based on the most-active contracts, gold futures were down almost 2.9 per cent for the week, which was the largest such percentage loss for a most-active contract since the week ended May 5, 2017, according to FactSet data. September silver lost 0.6 per cent to USD 14.631 an ounce, for a weekly decline of 4.3 per cent.
In the New York Comex trade, gold for December delivery dipped to USD 1,184.20 an ounce compared to last Friday's close of USD 1,219 and silver for September contract fell to finish at USD 14.631 an ounce from USD 15.295.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,685 per 10 grams from last Friday's closing level of Rs 29,490 and later drifted to Rs 29,250 before settling at Rs 29,315, revealing a fall of Rs 175, or 0.59 per cent. Pure gold (99.9 purity) opened higher at Rs 29,835 per 10 grams compared to preceding weekend level of Rs 29,640 and later declined to Rs 29,400 before closing at Rs 29,465, showing a loss of Rs 175, or 0.59 per cent.
Silver ready (.999 fineness) opened higher at Rs 37,885 per kilogram from last Friday's closing level of Rs 37,825 and later dropped to Rs 36,650 before finishing at Rs 36,875, showing a loss of Rs 950 per kilo, or 2.51 per cent.