Gold snaps 2-day rally; slips on reduced offtake, global cues

Snapping two-day gains, gold prices fell by Rs10 to Rs32,400 per ten gram in the national capital today on reduced offtake at existing higher levels amid a weak global trend.

Silver also dropped by Rs 750 to Rs 49,450 per kg on lack of buying support from industrial units and coin makers.

Traders said reduced offtake by retailers and stockists at prevailing higher levels mainly kept pressure on gold and silver prices.

Weak global trend, as investors weighed speculation that the US Fed will delay a reduction in stimulus against signs of reduced demand in world's biggest consumer - China, also influenced the sentiment, they said.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.5 per cent to $1,340.44 an ounce and silver by 1.2 per cent to $22.42 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity slipped by Rs 10 each to Rs 32,400 and Rs 32,200 per ten gram, respectively. It had gained Rs 785 in last two days. Sovereign held steady at Rs 25,300 per piece of eight gram.

Similarly, silver ready dropped by Rs 750 to Rs 49,450 per kg and weekly-based delivery by Rs 350 to Rs 49,650 per kg. The white metal had surged by Rs 1,190 on Wednesday.

On the other hand, silver coins continued to be asked at last level of Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.