Gold prices fall by Rs 100 on easing demand

Gold prices declined by Rs 100 to Rs 34,270 per 10 gram in the bullion market here on Monday due to easing demand from jewellers despite a positive overseas trend, according to the All India Sarafa Association.

Silver, however advanced by Rs 90 to Rs 39,090 per kg on increased offtake by industrial units and coin makers.

According to traders, decline in demand from local jewellers at the domestic spot market led to the dip in gold prices, though a firm global trend capped the fall.

Globally, spot gold was trading higher at USD 1,404.92 an ounce, while silver was up at USD 15.36 an ounce in New York.

"Spot gold prices are hovering near six-year highs on growing tensions in the Middle East and dovish comments from the major central banks that boosted the yellow metal's safe haven appeal," said Hareesh V, Head-Commodity Research, Geojit Financial Services.

"A weak dollar, which plummeted to a three-month low on expectations of an imminent interest rate cut by the US Federal Reserve, also assisted the sentiments," he said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 34,270 and Rs 34,100 per 10 gram, respectively.

Sovereign gold, however, held steady at Rs 26,800 per eight gram.

On Saturday, gold had risen by Rs 70 to Rs 34,370 per 10 gram.

Meanwhile, silver ready gained Rs 90 to Rs 39,090 per kg, while weekly-based delivery gained Rs 144 to Rs 38,098 per kg.

Price of silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.