Tracking weak global trend, gold continued to reel under pressure for the third straight day here on Thursday and closed with another hefty loss.
“The market is in correction mode because the metal is already overbought,” said a dealer in Mumbai. Gold demand in India  the world’s largest consumers  appears to be weak despite low prices due to the ongoing shraddh period, an inauspicious period to buy anything new, said another dealer.
The yellow metal fell to a low of $726 an ounce in international markets as the dollar recovered from its recent setback against the euro, which prompted investors to take profit. The metal had recently touched a 28-year high of $750 an ounce when the dollar was on the receiving end.
Sources said surging dollar had an impact on gold prices across the globe as the price of gold is normally fixed in dollar terms. Back home, standard gold (99.5) plunged by Rs 150 each in Kolkata and Chennai before finishing the business at Rs 9,480 and Rs 9,340 per 10 gm, respectively. In Mumbai, the yellow metal became cheaper by another Rs 120 at Rs 9,320 per 10 gm. Thus the metal had lost Rs 285 per 10 gm in three consecutive trading sessions. In Delhi, gold prices fell sharply by Rs 140 at Rs 9,450 per 10 gm on panic selling supported by lower global trend.
Domestic silver also lost its ground further on lack of demand from industrial users amidst fresh fall in London prices. Also, ready silver (.999) tumbled to 17,565 in Chennai, showing a fresh loss of Rs 360 over the previous close followed by Delhi with a drop of Rs 300 at Rs 17,700 per kg. In Kolkata, the white metal fell by Rs 300 at Rs 17,650 per kg and in Mumbai, it dropped Rs 220 before closing at Rs 17,870 per kg.
