Gold falls for third straight day on global cues, muted demand

Falling for the third straight day, gold prices dropped by Rs 20 to Rs 27,070 at the bullion market today in tandem with a weakening global trend amid sluggish demand from jewellers.

Silver, however, recovered by Rs 60 to Rs 37,110 per kg on scattered enquiries from industrial units.

Traders said a weakening global trend where gold traded lower as investors weighed the prospect for higher US borrowing costs against a dimming global economic outlook before a Federal Reserve meeting this week, mainly weighed on gold prices.

Globally, gold fell 0.2 per cent to USD 1,162.25 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 20 each to Rs 27,070 and Rs 26,920 per ten grams, respectively. It had lost Rs 245 in the previous two sessions.

Sovereign, however, continued to be traded at last level of Rs 22,400 per piece of eight gram.

On the other hand, silver ready recovered by Rs 60 to Rs 37,110 per kg and weekly-based delivery by Rs 10 to Rs 36,950 per kg.

Meanwhile, silver coins remained flat at Rs 52,000 for buying and Rs 53,000 for selling of 100 pieces in the absence of worthwhile activity.