Gold declines to Rs21,220 on reduced offtake,silver up by Rs50

Gold declined by Rs50 to Rs21,220 per 10 grams today on reduced offtake at existing high levels, despite firm global cues. Silver, however, surged Rs50 to Rs54,250 per kg on demand from industrial units.

Market analysts said reduced offtake at existing high levels and end of marriage season mainly kept gold prices at lower levels.

Investors shifting funds to a strengthening stock market also effected trading sentiments for the yellow metal, they added.

In global markets, while gold rose by 0.3% to $1,431.48 an ounce, silver fell by 0.2% to $36.04 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity declined by Rs50 each to Rs21,220 and Rs21,100 per 10 grams, respectively. However, sovereigns continued to be enquired around previous level of Rs17,500 per piece of eight grams.

On the other hand, silver ready remained in demand and added another Rs50 to Rs54,250 per kg. Silver weekly-based delivery gained Rs45 to Rs53.895 per kg.

Silver coins held steady at Rs58,900 for buying and Rs59,400 for selling of 100 pieces.