Gold falls Rs 120 on weak global cues, low demand

Gold prices fell by Rs 120 to Rs 32,200 per 10 gram at the bullion market today, tracking a weak trend overseas and muted demand from local jewellers.

Silver also dropped by Rs 150 to Rs 40,300 per kg due to reduced offtake by industrial units and coin makers.

Traders said a weak trend overseas as strength in dollar against some currencies eroded appeal of the precious metal as a safe-haven investment and fading demand from local jewellers at the domestic spot markets pulled down gold prices.

Globally, gold fell by 0.43 per cent to USD 1,316.90 an ounce and silver by 0.36 per cent to USD 16.40 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 120 each to Rs 32,200 and Rs 32,050 per 10 grams, respectively. The precious metal had gained Rs 110 on Saturday.

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

In sync with gold, silver ready declined by Rs 150 to Rs 40,300 per kg. Silver weekly-based delivery too fell by a similar margin to trade at Rs 38,855 per kg.

Silver coins, however, held steady at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.