Gold prices turn soft on weak demand from local jewellers

Gold prices fell by Rs 70 to Rs 32,180 per 10 gram at the bullion market Tuesday owing to slackened demand from local jewellers amid a weak trend overseas.

Silver followed suit and eased by Rs 50 to Rs 39,700 per kg, hit by lower demand from industrial units and coin makers.

Traders attributed the fall to easing demand from local jewellers and retailers following a weak trend overseas.

Globally, gold fell by 0.07 per cent to USD 1,226.90 an ounce and silver by 0.20 per cent to USD 14.73 an ounce in Singapore.

Diversion of funds towards rising equity markets also dampened the sentiment, traders said.

In the national capital, gold of 99.9 per cent fell by Rs 70 to Rs 32,180 per 10 gram, while 99.5 per cent purity lost Rs 80 to Rs 32,020 per 10 gram. The precious metal had gained Rs 200 Monday.

Sovereign gold, however, remained steady at Rs 24,700 per piece of 8 gram.

Silver ready slipped by Rs 50 to Rs 39,700 per kg, while weekly-based delivery's decline was steeper, which fell by Rs 160 to Rs 39,100 per kg.

Silver coins, however, continued to be traded at the previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.