Gold falls by Rs 130 on global cues, sluggish demand

Gold prices fell by Rs 130 to Rs 26,320 per 10 grams at the bullion market today amid a weak trend in precious metals at global markets and subdued domestic demand.

Silver also eased by Rs 320 to Rs 35,780 per kg following reduced offtake by industrial users and coin makers.

Traders said besides weak global trend where gold dropped to a three-month low of $1,147.72 as strengthening dollar cut demand for the precious metals as an alternative, mainly kept pressure on gold prices.

Globally, silver also fell by 0.99% to $15.47 an ounce in yesterday's trade.

In the national capital, gold of 99.9 and 99.5% purity fell by Rs 130 each to Rs 26,320 and Rs 26,120 per 10 grams, respectively. It had edged up by Rs 20 yesterday.

Sovereign, however, continued to be asked at last level of Rs 23,600 per piece of eight gram.

In a similar fashion, silver ready dropped by Rs 320 to Rs 35,780 per kg and weekly-based delivery by Rs 510 to Rs 35,275 per kg.

On the other hand, silver coins remained unchanged at Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.