Gold, silver fall on weak global cues, low demand

Signs of buoyant US economy revive chances of US Fed rate hike, exert pressure on precious metal prices

Gold slipped by Rs 100 to Rs 27,150 per ten grams at the bullion market today, tracking a weak global trend amid subdued demand from jewellers at prevailing levels.

Silver also declined by Rs 200 to Rs 37,100 per kg on reduced offtake by industrial units and coin makers.

Traders said a weak global trend where gold retreated from three-month high as signs of a buoyant US economy revived expectations that the US Federal Reserve may raise interest rates, mainly put pressure on precious metals prices.

Globally, gold declined 0.5 per cent to $1,171.38 an ounce and silver lost 0.9 per cent to $15.90 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 100 each to Rs 27,150 and Rs 27,000 per 10 grams, respectively. It had gained Rs 100 on Saturday's trade.

Sovereign, however, held steady at Rs 22,400 per piece of eight grams.

Following gold, silver ready traded lower by Rs 200 to Rs 37,100 per kg and weekly-based delivery by Rs 415 to Rs 36,980 per kg.

On the other hand, silver coins continued to rule flat at Rs 52,000 for buying and Rs 53,000 for selling of 100 pieces.