Gold falls Rs 70 on global cues, weak demand

Gold prices drifted lower by Rs 70 to Rs 32,050 per 10 grams at the bullion market Saturday, snapping a three-day rising streak on the back of weak global cues and easing demand from local jewellers.

Silver also dropped by Rs 100 to Rs 39,400 per kg on reduced offtake by industrial units and coin makers.

Gold eased in the global markets as the US dollar climbed and global stocks rebounded from a six-day rout, eroding demand for the precious metals as a safe haven.

Easing demand from jewellers as well as retailers too weighed on gold prices in the domestic market, traders said.

Gold prices fell 0.50 per cent to USD 1,218.50 an ounce in New York on Friday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 70 each to Rs 32,050 and Rs 31,900 per 10 grams, respectively. The precious metal had gained Rs 470 in the previous three sessions.

Sovereign gold, however, remained unaltered at Rs 24,600 per piece of eight grams in limited deals.

Tracking gold, silver ready slipped by Rs 100 to Rs 39,400 per kg, while weekly-based delivery edged higher by Rs 10 to Rs 38,915 per kg.

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