Gold remains weak on global cues, subdued demand

Falling for the third straight day, gold prices were down by Rs 10 to Rs 26,820 per 10 gm at the bullion market on Saturday in tandem with a weakening global trend amid sluggish demand from jewellers.

Silver, however, recovered by Rs 140 to Rs 36,770 per kg on increased offtake from industrial units and coin makers.

Bullion traders said a weakening global trend where gold posted the biggest weekly decline since August amid renewed concern that the US Federal Reserve will raise interest rates in December, mainly kept pressure on gold prices.

Globally, gold slipped 0.5 per cent to $1,141.40 an ounce in New York yesterday.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 10 each to Rs 26,820 and Rs 26,670 per ten grams, respectively. It had lost Rs 435 in last two days.

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

On the other hand, silver ready recovered by Rs 140 to Rs 36,770 per kg, while weekly-based delivery traded lower by Rs 60 to Rs 36,490 per kg due to lack of speculators' buying.

Meanwhile, silver coins remained steady at Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces in the absence of any worthwhile activity.