No sparkle for gold in special Diwali trading, falls by Rs. 85

No sparkle for gold in special Diwali trading, falls by Rs. 85

Snapping a seven-day rising streak, gold prices fell by Rs. 85 in special Diwali trading on Tuesday in the absence of any major buying activity amid a weak global trend.

While gold decline by Rs. 85 to Rs. 32,400 per ten grams after gaining Rs. 1,535 in last seven-sessions, silver lost 500 atRs. 61,600 per kg on reduced offtake.

Sentiment turned bearish in the absence of buying support as traders were in festive mood and opened their establishment only to perform Diwali puja, traders said.

They added that weak global trends on European finance ministers struggling to agree on Greek aid, strengthened the dollar and curbed bullion's appeal as alternative investment.

Gold in New York, which normally sets price trend on the domestic front, fell 0.2% to $1,726.70 dollar an ounce.

On the domestic front, gold of 99.9 and 99.5% purity declined by Rs. 85 each to Rs. 32,400 and Rs. 32,200 per ten grams respectively, while sovereign shed Rs. 50 at Rs. 25,500 per piece of eight gram.

In line with a general weak trend, silver ready fell by Rs. 500 to Rs. 61,600 per kg and weekly-based delivery by Rs. 1,075 to Rs. 61,325 per kg.

Silver coins followed suit and plunged by Rs. 2000 to Rs. 76,000 for buying and Rs. 77,000 for selling of 100 pieces.