Gold falls on muted demand; silver steady

Gold fell by Rs 235 to Rs 32,015 per 10 gram at the bullion market Friday on muted demand from local jewellers amid appreciating rupee.

Silver, however, held steady at Rs 37,900 per kg on scattered enquiries from industrial units and coin makers.

Traders said fall in demand from local jewellers as well as retailers largely dragged down gold prices, but a firm trend overseas, capped the fall.

The appreciating rupee, making imports cheaper, also fuelled the downtrend in the precious metal prices, they added.

The rupee strengthened by 25 paise to 71.72 against the dollar (intra-day) in the forex market Friday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped by Rs 235 each to Rs 32,015 and Rs 31,865 per 10 gram, respectively. The precious metal had risen Rs 350 Thursday.

Sovereign gold, however, remained flat at Rs 24,800 per piece of 8 gram.

Globally, gold rose 0.17 per cent to USD 1,216.10 an ounce, while silver edged up 0.14 per cent to USD 14.39 an ounce in Singapore.

On the other hand, silver ready ended steady at Rs 37,900 per kg on scattered demand, while weekly-based delivery rose by Rs 147 to Rs 36,818 per kg on speculative buying.

Silver coins continued to be traded at previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.