Gold prices declined modestly after a fourth straight session rally at the domestic bullion market today due to fresh bouts of selling by investors as well as lack of local buying support at existing levels. Silver also slumped on the back of heavy speculative unwinding coupled with subdued industrial demand.
Traders and investors turned a bit cautious after a spike in the last week and decided to take some profits, a trader said. Standard gold (99.5 purity) slipped by Rs 60 to finish at Rs 28,225 per 10 grams from last Saturday's closing level of Rs 28,285. Pure gold (99.9 purity) fell by Rs 65 to settle at Rs 28,370 per 10 grams against Rs 28,435 previously. Silver (.999 fineness) dropped by Rs 235 per kg to conclude at Rs 45,085 per kg as compared to Rs 45,320 last weekend. Globally, the shiny metal continued to hold near a two- month high on safe-haven appeal on the back of escalating violence in Iraq and weak dollar. Spot gold was trading little changed at USD 1,315.15 an ounce in early European trade.