Gold prices fall by Rs 100 on muted demand

Gold dropped by Rs 100 to Rs 32,000 per 10 gram Tuesday, extending its slide for the second day amid tepid demand from local jewellers even as the precious metal edged up globally.

Silver followed suit and fell by Rs 200 to Rs 37,900 per kg, owing to reduced offtake by industrial units and coin makers.

Traders said, gold prices took a hit owing to fading demand from local jewellers and retailers at the bullion market but a a firm trend overseas, restricted the fall.

In the international market, gold gained 0.09 per cent to USD 1,226 an ounce and silver by 0.07 per cent to USD 14.50 an ounce in London.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 32,000 and Rs 31,850 per 10 gram, respectively. It had shed Rs 50 Monday.

Sovereign gold, on the other hand, remained unchanged at Rs 24,800 per piece of eight gram in scattered deals.

Tracking gold, silver ready continued its weakness and fell by another Rs 200 to Rs 37,900 per kg and weekly-based delivery by Rs 251 to Rs 36,769 per kg.

Silver coins, however, maintained a steady trend at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.