Gold falls on muted demand;silver up on increased offtake

Gold prices slipped by Rs 90 to Rs 31,860 per ten gram at the bullion market today on slackened demand from local jewellers, shrugging off a firm trend overseas.

On the other hand, silver ready surged by Rs 400 to Rs 41,950 per kg backed by increased offtake by industrial units and coin makers.

Traders said easing demand from local jewellers as well as retailers at the domestic spot market led to the downtrend in gold prices, but a firm trend overseas capped the fall.

Globally, gold rose 0.30 per cent to USD 1,302.70 an ounce in Singapore, supported by a weaker dollar and trade worries between the US and China, even as the US Federal Reserve forecast a slight pace of interest rate hike this year.

Silver too rose 0.44 per cent to USD 17.08 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 90 each to Rs 31,860 and Rs 31,710 per ten gram, respectively. It had gained Rs 150 in yesterday's trade.

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

On the other hand, silver ready rebounded by Rs 400 to Rs 41,950 per kg and weekly-based delivery rose by Rs 505 to Rs 41,125 per kg.

Silver coins continued to be traded at last level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.