Gold, silver prices drop on low demand

Gold prices tumbled by Rs 395 to Rs 32,700 per 10 grams at the bullion market Friday following slackened domestic demand, according to the All India Sarafa Association.

Silver too declined by Rs 590 to Rs 38,260 per kg amid decrease in demand from coin makers and industrial units.

Drop in gold prices was mainly due to low domestic demand amid subdued global trends, bullion traders said.

In the international market, gold was trading at USD 1,287.70 an ounce and silver at USD 15.01 an ounce in New York.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 395 each to Rs 32,700 and Rs 32,530 per 10 grams, respectively.

Gold prices had gained Rs 35 to Rs 33,095 Thursday.

Sovereign gold, however, remained unchanged at Rs 26,400 per piece of eight grams Friday.

Silver ready fell by Rs 590 to Rs 38,260 per kg and weekly-based delivery declined Rs 713 to Rs 37,289 per kg.

Silver coins, however, were unchanged at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.