Gold fails to shine on Akshaya Tritiya

Gold prices fell by Rs 100 to close at Rs 27,100 per 10 grams at the bullion market today as the auspicious 'Akshaya Tritiya' festival failed to generate any substantial buying activity for the precious metal amid a weak global trend.

Silver also dropped Rs 560 to Rs 36,440 per kg on reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend in overseas markets as investors weighed a rally in equities and the dollar in the absence of any significant buying by jewellers, led to decline in gold prices.

Globally, gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 per cent to USD 1,192.29 an ounce.

They said, however, token retail purchase on auspicious occasion of Akshaya Tritiya limited the fall in the prices of the precious metals.

Akshaya Tritiya is considered to be an auspicious day to make token purchases of gold ornaments, jewellery, gold coins and other gold items.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 100 each to Rs 27,100 and Rs 26,950 per 10 grams, respectively. It had gained Rs 125 yesterday.

Meanwhile, last year on 'Akshaya Tritiya', gold traded at Rs 30,390 per 10 grams.

The Sovereign, however, remained flat at Rs 23,700 per piece of eight grams in limited deals.

"The overall sentiment is weak for gold even on the auspicious 'Akshaya Tritiya', said Rakesh Anand, a local jewellers in the national capital.

Following gold, silver ready moved down by Rs 560 to Rs 36,440 per kg and weekly-based delivery by Rs 520 to Rs 36,125 per kg.

Silver coins also plunged by Rs 1,000 to Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.