Gold, silver lose shine on weak global cues, muted demand

Gold prices today drifted lower by Rs 50 to Rs 29,700 per 10 grams at the bullion market, tracking a weak trend overseas and slackened demand from jewellers at the domestic spot market.
Silver also dropped by Rs 370 Rs 41,130 per kg due to reduced offtake by industrial units and coin makers.
Traders said that sentiment was dampened mainly due to weak global trend where gold fell for a third day amid speculation that Britain will probably vote to stay in the European Union in a referendum tomorrow, eroding demand for haven assets.
Globally, gold dropped 0.5 per cent to USD 1,261.27 an ounce, the lowest price since June 9 in Singapore.

Furthermore, subdued demand from jewellers and retailers at domestic spot market fuelled the downtrend.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity traded lower by Rs 50 each to Rs 29,700 and Rs 29,550 per 10 grams, respectively. The precious metals had gained Rs 100 yesterday.

Sovereign, however, remained steady at Rs 23,100 per piece of eight grams.
Tracking gold, silver ready too fell by Rs 370 to Rs 41,130 per kg and weekly-based delivery by Rs 510 to Rs 41,150 per kg.
On the other hand, silver coins continued to be enquired at previous level of Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.