Gold down Rs 200 on low demand

Gold fell by Rs 200 to Rs 31,400 per 10 gram at the bullion market Friday owing to weak demand from jewellers and retailers even as the metal strengthened overseas.

Silver followed suit and fell by Rs 250 to Rs 37,650 per kg due to reduced offtake by industrial units and coin makers.

Marketmen said muted demand from local jewellers and retailers at the domestic spot markets mainly kept pressure on the precious metal, but a firm trend overseas capped the fall.

Globally, gold rose 0.61 per cent to USD 1,208.20 an ounce and silver 0.78 per cent to USD 14.25 an ounce in Singapore as softer-than-expected US consumer prices data dimmed the case for a faster pace of policy tightening by the Federal Reserve.

In the national capital, gold of 99.9 and 99.5 per cent purity drifted lower by Rs 200 each to Rs 31,400 and Rs 31,250 per 10 gram, respectively. The precious metal had shed Rs 25 yesterday.

Sovereign, however, remained flat at Rs 24,500 per piece of eight gram.

Tracking gold, silver ready dropped by Rs 250 to Rs 37,650 per kg and weekly-based delivery by Rs 75 to Rs 37,210 per kg.

Silver coins, however, continued to be traded at previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.