Gold declines on weak global cues, low demand

Gold on Tuesday eased by Rs 25 to Rs 27,450 per ten grams at the bullion market here, due to subdued demand from jewellers and weak overseas trends.

Silver prices also fell by Rs 200 to Rs 38,850 per kg on reduced offtake by industrial units and coin makers.

Weak global trends impacted gold prices here, marketmen said.

In global markets, gold dropped to about two-week lows as prospects for US interest rate increase helped strengthen the US dollar, curbing demand for the precious metal.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.9% to $1,195.32 an ounce, the lowest since May 13 and silver dropped 1.9% to $16.84 an ounce.

Besides, subdued demand from jewellers and retailers dampened the sentiment, they said.

In the national capital, gold of 99.9% purity fell by Rs 25 to Rs 27,450 per ten grams. Gold of 99.5% purity too eased by Rs 25 to Rs 27,300 per ten grams.

Sovereign, however, remained steady at Rs 23,800 per piece of eight gram in limited deals.

Following gold, silver ready dropped by Rs 200 to Rs 38,850 per kg and weekly-based delivery by Rs 35 to Rs 38,990 per kg.

Silver coins also plunged by Rs 1,000 to Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.