Gold continues downward trend; silver drops sharply

Updated: Tuesday, May 21, 2013, 11:03 [IST]

Gold continuing its losing streak, fell for an eighth straight session on fears that the US Federal Reserve may step back its stimulus program, dimming the appeal of the yellow metal.

Investors are finding dollars on the flip side, US dollar has been appreciating against all major currencies. Positive trend seen in global equities is also hurting the precious metal sentiments.

International spot gold was seen trading at $1,351 an ounce.

Many analysts believe that gold will continues its bearish trend. Domestically, gold futures dropped during the trade and was seen trading at Rs 25,454 lower by Rs 381 or 1.47% on the Multi Commodity Exchange at 2.00 pm IST.

Heaving selling was seen in silver also, which dropped more than 3% and was seen trading at Rs 40944 per kg lower by Rs 1,685 or 3.95% on the MCX.

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