Gold softens on muted demand; silver recovers

Gold prices fell by Rs 30 to Rs 27,900 per 10 grams on Monday owing to slackened demand from jewellers, even as the metal strengthened overseas. Silver, however, advanced by Rs 350 to regain the Rs 40,000 per kg mark on increased offtake by industrial units and coin makers.

Traders attributed the slide in gold prices to tepid demand from jewellers as well as retailers at the domestic spot market following the end of wedding season and prevailing cash crunch in the market, but a firm trend overseas capped the fall.

Globally, gold showed some strength overseas as the dollar weakened against a basket of currencies overseas, raising appeal of the precious metal as a safe haven. Gold rose 0.46% to $1,139.80 (nearly Rs 77272.17) an ounce and silver by 0.03% to $16.07 (nearly Rs 1089.46) an ounce in Singapore.

In the national capital, gold of 99.9% and 99.5% purity were down by Rs 30 each to Rs 27,900 and Rs 27,750 per 10 grams, respectively. It had gained Rs 180 in Saturday's trade.

Sovereign, however, remained steady at Rs 24,000 per piece of eight grams. On the other hand, silver ready traded higher by Rs 350 to Rs 40,000 per kg, while weekly-based delivery declined by Rs 95 to Rs 39,600 per kg. On the other hand, silver coins remained unaltered at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.