Gold extends losses on subdued global cues, lacklustre demand

Gold prices drifted lower by Rs 105 to Rs 31,860 per 10 grams, extending its slide for the third straight day at the bullion market today in tandem with weak global cues amid muted demand from local jewellers.

However, silver recovered by Rs 70 to Rs 40,900 per kg on scattered enquiries from industrial units and coin makers.

Marketmen said sentiment in gold remained bearish due to subdued trend overseas as demand for gold as a safe haven investment faded on hopes of US-North Korea summit revived.

Globally, gold fell 0.08 per cent to USD 1,296.20 an ounce and silver 0.58 per cent to USD 16.34 an ounce in Singapore.

Besides, slackened demand from local jewellers and retailers at domestic spot market too weighed on gold prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 105 each to Rs 31,860 and Rs 31,710 per 10 grams, respectively. The precious metal had lost Rs 510 in last two days.

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

On the other hand, silver ready recovered by Rs 70 to Rs 40,900 per kg and weekly-based delivery by Rs 205 to Rs 40,120 per kg.

Silver coins continued to be traded at previous level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.