Gold turns weak on lower global cues

Trading sentiment turned weak following reports of the precious metal falling in London as the dollar rose against the euro, diminishing the metal's appeal as a hedge against declines in the US currency.

Some investors shifted their funds from gold to rising equity market for quick gains and off-marriage season, reducing the precious metals demand, they said. The gold in London fell by $5.48 to $861.47 an ounce and silver by 14.51 cents to $16.57.

Standard gold and ornaments lost Rs 65 each at Rs 12,060 and Rs 11,910 per ten grams respectively. Sovereign, however, remained flat at Rs 9,875 per piece of eight gram.

A similar trend was noticed in white metal as silver ready met with heavy selling and dropped by Rs 320 to Rs 23,380 per kg and weekly-based delivery by Rs 255 at Rs 23,130 per kg respectively. On the other hand, silver coins was traded around previous levels of Rs 26,700 for buying and Rs 26,800 for selling of 100 coins.