Gold sheds Rs 5 on subdued demand

Gold prices eased by Rs 5 to Rs 18,140 per ten grams in the bullion market today on sluggish demand amid a steady overseas trend.

However, silver rose by Rs 100 to Rs 29,000 per kg on fresh buying by industrial units and coins makers for the festival demand.

Marketmen said subdued demand for gold at existing higher levels led to a decline in the metal prices, while silver prices strengthened on brisk buying by industrial units and coins makers for the festive season.

The gold in overseas markets, which normally sets the price trend on the domestic front here, remained steady at $1,181.40 an ounce.

Gold of 99.9 per cent and 99.5 per cent purity traded lower by Rs 5 each to Rs 18,140 and Rs 18,040 per ten grams, respectively, while sovereigns remained flat at Rs 14,500 per piece of eight grams in limited deals. 

Silver-ready rose by Rs 100 to Rs 29,000 per kg and weekly-based delivery by Rs 135 to Rs 28,795 per kg. Silver coins also gained Rs 100 to Rs 34,200 for buying and Rs 34,300 for selling of 100 pieces on festive demand.