Gold falls by Rs100 on reduced offtake, global cues

Both the precious metals, gold and silver drifted on the bullion market today on reduced offtake by stockists at existing higher levels, amid weakening global trends.

While gold fell by Rs100 to Rs20,520 per 10 grams, silver dropped by Rs300 to Rs45,800 per kg.

Trading sentiment turned bearish after gold fell from a three-week high in global markets as advancing dollar against leading currencies eroded demand for the precious metals as an alternative asset.

Gold in global markets, which normally sets a price trend on the domestic front, fell by $6.70 to $1356.80 an ounce and silver by 0.99% to $29.91 an ounce.

Retail customers refraining from purchasing gold at existing higher levels also dampened the trading sentiment, they said.

On the domestic front, gold of 99.9 and 99.5% purity fell by Rs100 each to Rs20,520 and Rs20,400 per 10 grams, respectively. The metal had gained Rs120 in the previous trading session.

Sovereign continued to be asked around previous level of Rs16,900 per piece of eight grams.

In line with a general weakening trend, silver ready dropped by Rs300 to Rs45,800 per kg and weekly-based delivery by Rs205 to Rs45,510 per kg.

However, silver coins maintained previous levels of Rs50,300 for buying and Rs50,400 for selling of 100 pieces.