Gold, silver turn weak on sluggish local demand, bearish global cues

Gold shed Rs 50 to Rs 32,100 per 10 gram at the bullion market on Monday because of slackened demand from local jewellers amid a weak trend overseas. Silver, too, weakened by Rs 50 to Rs 38,100 per kg. 

Traders said fall in demand from local jewellers and retailers and bearish trend overseas, after comments from Federal Reserve officials showed caution over the global economy, prompting investors to reassess the pace of future US interest rate hikes, mainly kept pressure on gold prices. Globally, gold fell 0.11 per cent to $1,220.80 an ounce and silver by 0.21 per cent to $14.46 an ounce.

In Delhi, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 50 each to Rs 32,100 and Rs 31,950 per 10 gram, respectively.

The yellow metal had gained Rs 135 on Saturday.

Sovereign gold, however, remained unaltered at Rs 24,800 per piece of 8 grams.

In step with gold, silver ready eased by Rs 50 to Rs 38,100 and weekly-based delivery by Rs 3 to Rs 37,020 per kg.

Silver coins, however, continued to be traded at previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.