Gold loses sheen, falls Rs 135 on tepid demand

Gold prices Wednesday dropped by Rs 135 to Rs 33,260 per 10 gram in the national capital on lacklustre demand from jewellers, according to the All India Sarafa Association.

Silver prices too fell by Rs 100 to Rs 38,200 per kg on reduced offtake by industrial units and coin makers.

Meanwhile, a possibility of US-China trade talks revival boosted financial market sentiment globally, prompting investors to take position in equities rather than other safe haven investments like bullion, analysts said.

However, bucking the global trend, Indian stocks fell on Wednesday.

Globally, spot gold was trading marginally higher at USD 1,299.40 an ounce, while silver was up at USD 14.92 an ounce in New York.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped by Rs 135 each to Rs 33,260 and Rs 33,090 per 10 gram, respectively.

On Tuesday, the precious metal had gained Rs 377.

Sovereign gold, however held steady at Rs 26,500 per eight gram.

Meanwhile, silver ready declined by Rs 100 to Rs 38,200 per kg, while weekly-based delivery fell Rs 47 to Rs 37,510 per kg.

On the other hand, silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.