Gold prices fall on weak global cues, low demand

Gold prices fell by Rs 250 to Rs 31,850 per 10 gram at the bullion market Friday, tracking a sluggish trend overseas amid fall in demand from local jewellers.

Silver prices, too, fell by Rs 100 to Rs 39,250 per kg due to reduced offtake by industrial units and coin makers.

According to traders, gold prices took a hit due to fall in demand at prevailing levels from local jewellers at the domestic spot market and a weak trend overseas.

Globally, gold softened by 0.16 per cent to USD 1,199.40 an ounce in Singapore Friday as investors remained cautious after the US Treasury yields hit multi-year peaks and ahead of monthly employment data.

Silver, too, shed 0.03 per cent to USD 14.64 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped Rs 250 each to Rs 31,850 and Rs 31,700 per 10 gram, respectively. The precious metal had gained Rs 625 in the previous two days.

Sovereign gold, however, traded flat at Rs 24,600 per piece of 8 gram.

In sync with gold, silver ready and silver weekly-based delivery lost Rs 100 each at Rs 39,250 and Rs 38,845 per kg, respectively.

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