Gold prices fall by Rs 150 to Rs 30,700 on muted demand, global cues

Gold prices on Monday dropped by Rs 150 to Rs 30,700 per 10 grams, extending fall for a third day, at the bullion market on muted demand and weak global cues.

Silver prices too fell further by Rs 200 to Rs 41,200 per kg due to reduced offtake by industrial units and coin makers.

Traders said a weak trend overseas as rising dollar eroded appeal of the precious metals as safe haven investment influenced prices at domestic markets.

The dollar gained on expectations of tightening of monetary policy by the US Federal Reserve in the two-day meeting starting tomorrow, they added.

Globally, gold fell 0.45 per cent to $1313.20 an ounce and silver by 0.20 per cent to $17.50 an ounce in Singapore.

Besides, tepid demand from local jewellers and retailers at domestic spot market dampened the sentiment.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 150 each at Rs 30,700 and Rs 30,550 per 10 grams, respectively. The precious metal had lost Rs 150 in the last two days.

Sovereign, however, remained unaltered at Rs 24,700 per piece of eight gram.

Silver ready dropped by Rs 200 to Rs 41,200 per kg and weekly-based delivery slipped by Rs 255 to Rs 40,560 per kg.

On the other hand, silver coins maintained a steady trend at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.