Gold falls Rs 250 on muted demand, weak global cues

After touching an all-time high in the previous session, gold prices on Tuesday fell Rs 250 to Rs 35,720 per 10 gram in the national capital amid weak trend overseas and fall in domestic demand, according to the All India Sarafa Association.

Silver declined marginally by Rs 10 to Rs 41,950 per kg on reduced offtake by industrial units and coin makers.

Trading sentiment turned bearish after gold declined in overseas markets as a strengthening US dollar reduced the demand for the precious metal as an alternative investment, traders said.

Besides, lacklustre demand from jewellers also weighed on gold prices, they added.

Globally, spot gold was trading lower at USD 1,418.20 an ounce in New York, while silver was up at USD 16.47 an ounce.

"Gold prices witnessed decline after dollar index gained strength ahead of ECB meeting and US Debt ceiling deal," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 250 each to Rs 35,720 and Rs 35,550 per 10 gram, respectively.

Sovereign gold also declined by Rs 100 to Rs 27,400 per eight gram.

On Monday, gold prices touched an all-time high of Rs 35,970 per 10 gram.

Silver ready dropped Rs 10 to Rs 41,950 per kg, while weekly-based delivery fell Rs 38 to Rs 41,035 per kg.

Price of silver coins held flat at Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.