Gold remains flat despite firm trend overseas; silver slides Rs 70

Gold prices were ruling almost flat at Rs 34,120 per 10 gram at the bullion market here despite the precious metal gaining abroad following a fall in manufacturing activities in major economies.

Traders said gold prices declined by Rs 20 due to easing in demand from local jewellers.

Globally, gold was trading higher at USD 1,391.33 an ounce, while silver was quoting higher at USD 15.19 an ounce in New York.

"Bullion prices traded higher on Tuesday with international spot gold prices recovered from key support levels of USD 1,380 (an ounce).

Gold prices gained safe haven bets after fall in manufacturing activities in major economies. The decline in China Manufacturing PMI followed by weak US manufacturing PMI supported buying in gold prices with markets focusing on key fundamentals rather than tweets and comments on trade talks," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

In the national capital, silver prices fell by Rs 70 to Rs 38,500 per kg on reduced offtake by industrial units.

Gold of 99.9 per cent and 99.5 per cent purity dropped Rs 20 each to Rs 34,120 and Rs 33,950 per 10 gram, respectively, according to All India Sarafa Association.

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

Silver ready prices declined by Rs 70 to Rs 38,500 per kg, while weekly-based delivery reduced by Rs 158 to Rs 36,999 per kg.

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