Gold falls for third day, down Rs 50; silver gains Rs 650

Silver, on the other hand, found fresh buying support from industrial units and rose by Rs 650 to Rs 61,250 per kg.

Traders said business volumes declined as some shops were closed for 'Anantchaudas', and retail customers refrained from buying at prevailing higher levels.

Investors were also seen diverting funds from bullion to equities which also put pressure on gold prices, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity shed Rs 50 each to Rs 31,800 and Rs 31,600 per 10 grams, respectively. The metal has lost Rs 260 in last two sessions.

Sovereign held steady at Rs 25,400 per piece of eight grams.

Silver ready rose by Rs 650 to Rs 61,250 per kg, while weekly-based delivery plunged by Rs 1,270 to Rs 61,250 per kg, on lack of speculators buying support.

Silver coins remained steady at Rs 77,000 for buying and Rs 76,000 for selling of 100 pieces.