Gold falls by Rs 50 on muted demand, weak global cues

Gold prices fell by Rs 50 to Rs 32,400 per 10 grams here today due to weak demand from local jewellers and a subdued trend overseas.

Silver also declined by Rs 150 to Rs 40,550 per kg due to reduced offtake by industrial units and coin makers.

Traders said a weak trend overseas where the metal stayed close to five-week lows pressured by a stronger dollar and a rise in US Treasury yields.

Globally, gold fell 0.54 per cent to USD 1,322.60 an ounce and silver by 0.96 per cent to USD 16.51 an ounce in New York yesterday.

Besides, fall in demand from local jewellers and retailers at current levels too dampened sentiment, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 50 each to Rs 32,400 and Rs 32,250 per 10 grams, respectively. The precious metal had gained Rs 225 yesterday.

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

Silver ready fell by Rs 150 to Rs 40,550 per kg and weekly-based delivery by Rs 150 to Rs 39,425 per kg.

Silver coins, however, continued to be traded at previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.