Gold drops Rs 200 on lacklustre demand, sliver falls Rs 500

Gold prices fell by Rs 200 to Rs 31,750 per 10 grams Saturday, mostly on account of slack demand from local jewellers amid a weak trend overseas.

Silver too slumped by Rs 500 to Rs 37,300 per kg owing to reduced demand from industrial units.

Market analysts said tepid demand from local jewellers and retailers at the domestic spot market weighed on the yellow metal prices.

Globally, gold traded lower at USD 1,222.74 an ounce and silver was at USD 14.27 an ounce in New York on Friday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted down by Rs 200 each to Rs 31,750 and Rs 31,600 per 10 grams, respectively. The precious metal had lost Rs 90 on Friday.

Sovereign too fell by Rs 100 to end at Rs 24,700 per piece of eight grams.

In line with gold, silver ready dropped by Rs 500 to Rs 37,300 per kg and weekly-based delivery shed Rs 486 to reach Rs 36,100 per kg.

Silver coins, however, continued to be traded at the previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.

Meanwhile, Taking weak cues from the global market and fall in demand from local jewellers, gold prices dipped below the Rs 32,000-mark by plunging Rs 400 to Rs 31,750 per 10 grams at the bullion market during the week.

Silver also weakened on poor offtake by industrial units and coin makers.

Traders said sentiment turned bearish in sync with the weak trend overseas as prospects of higher US interest rates are negative for dollar-priced gold.

Globally, gold ended the week at USD 1,222.74 per ounce and silver at USD 14.27 an ounce in New York.

In addition, a considerable fall in demand from jewellers and retailers at the domestic spot market put pressure on the prices, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity started the week on a subdued note and closed at Rs 31,750 and Rs 31,600 per 10 grams respectively, showing a fall of Rs 400 each.