Gold declines on weak global cues, low demand

Amid weak cues from the global market and fall in demand from local jewellers, gold prices plunged Rs 390 to Rs 31,460 per 10 grams at the bullion market during the week.

Silver also lost Rs 890 to reach Rs 36,560 per kg due to poor offtake by industrial units and coin makers.

Traders said a weak trend in the overseas market weighed on gold prices.

Besides, a considerable fall in demand from jewellers and retailers at the domestic spot market put pressure on the prices, they said.

Globally, gold ended the week at USD 1,221.88 per ounce and silver at USD 14.17 an ounce in New York.

In the national capital, gold of 99.9 and 99.5 per cent purity started the week with a gain of Rs 100 each but succumbed to profit-booking and tepid demand to close at Rs 31,460 and Rs 31,310 per 10 grams respectively, showing a fall of Rs 390 each.

Sovereign, after remaining steady at Rs 24,800 per piece of 8 grams on Monday and Tuesday on some support, came under pressure and ended with a fall of Rs 100 at Rs 24,700.

Silver ready, barring Monday and Thursday, traded in the negative zone through the week and ended lower by Rs 890 to Rs 36,560 per kg while weekly-based delivery dropped by Rs 1,162 to Rs 35,147 per kg.

Silver coins, on the other hand, remained unchanged at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.