Gold, silver turn weak on global cues, slack demand

After three sessions of gains, gold prices declined by Rs 20 to Rs 28,710 per 10 grams on Friday on easing demand from local jewellers and weak global cues.

Silver followed suit and dropped by Rs 500 to 40,100 per kg on reduced offtake by industrial units and coin makers.

Bullion traders said that apart from a weak trend overseas, fall in demand from local jewellers at domestic spot market mainly led to the decline in the precious metals' prices.

The yellow metal had gained Rs 430 in the previous three days.

Globally, gold fell 0.48 per cent to $1,174.50 an ounce and silver by 0.97 per cent to $16.39 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 20 each to Rs 28,710 and Rs 28,560 per 10 grams, respectively.

Sovereign, however, held steady at Rs 24,200 per piece of eight grams.

Tracking gold, silver ready plunged by Rs 500 to Rs 40,100 per kg and weekly-based delivery by Rs 470 to Rs 40,110 per kg.

Silver coins, however, remained unaltered at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.