Gold prices fall for third straight day on muted demand

Gold prices drifted further lower by Rs 50 to Rs 31,950 per 10 gram at the bullion market Wednesday, falling for the third consecutive day, tracking a weak global trend amid weak demand from local jewellers.

The precious metal has lost Rs 150 in the past two days.

Silver too followed suit and dropped by Rs 100 to Rs 37,800 per kg at the bullion market Wednesday.

Traders said, sentiment remained bearish on the back of subdued global trend as strength in dollar eroded demand for the precious metals as a safe-haven.

Globally, gold shed 0.05 per cent to USD 1,221.50 an ounce, while silver held steady at USD 14.40 an ounce in Singapore.

Besides, fall in demand from jewellers as well as retailers at domestic spot market too kept pressure on the gold prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 50 each to Rs 31,950 and Rs 31,800 per 10 gram respectively.

Sovereign gold held flat at Rs 24,800 for piece of 8 gram on scattered support.

Silver ready ended Rs 100 down at Rs 37,800 per kg, while weekly-based delivery lost Rs 183 at Rs 36,586 per kg.

Silver coins, however, were unalatered at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.