Gold, silver fall on weak global cues, subdued demand

Both the precious metals, gold and silver, fell on frantic selling by stockists due to weak trends overseas.

While silver fell by Rs400 to Rs43,600 per kg, gold lost Rs150 to Rs20,100 per 10 grams.

Sentiments for gold turned bearish after the yellow metal declined in global markets on expectation that an economic recovery in US will erode the allure of precious metals as an alternative investment, amid concerns of rising inflation and escalating protests in Egypt.

Gold in global markets, which normally sets a price trend on the domestic front, fell by 0.3% to $1,331.50 an ounce.

Besides, fall in demand at existing higher levels and shifting of funds from weakening bullion to rising equities also influenced the trading sentiment to some extent.

On the domestic front, gold of 99.9% and 99.5% purity fell further by Rs150 and Rs130 to settle at Rs20,100 and Rs20,000 per 10 grams, respectively. The metal lost Rs120 in the previous session.

Sovereign followed suit and declined by Rs100 to Rs16,650 per piece of eight grams.

In line with a general weakening trend, silver ready dropped by Rs400 to Rs43,600 per kg and weekly-based delivery by Rs 335 to Rs43,335 per kg.

However, silver coins continued to be asked around previous level of Rs48,500 for buying and Rs48,600 for selling of 100 pieces.