Gold slips below Rs 34,000 on weak global cues

Gold prices fell by Rs 310 to Rs 33,770 per 10 grams at the bullion market Saturday due to tepid demand from local jewellers and weak global cues.

Silver rates also drifted lower by Rs 730 to Rs 39,950 per kg due to reduced offtake by industrial units and coin makers.

Traders said sentiment remained bearish on the back of a weak trend overseas as the dollar strengthened to a 10-week high against the yen, boosted by better-than-expected US gross domestic data for the fourth quarter, making bullion less attractive as a safe-haven investment.

Globally, spot gold fell 1.52 per cent to USD 1,293.90 an ounce and silver by 2.47 per cent to USD 15.29 an ounce in New York.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped sharply by Rs 310 each to Rs 33,770 and Rs 33,600 per 10 gram, respectively. Gold prices had fallen by Rs 570 in the previous two days.

Sovereign, however, remained unchanged at Rs 26,500 per piece of eight grams.

Silver ready fell by Rs 730 to Rs 39,950 per kg while weekly-based delivery dived Rs 840 to Rs 38,300 per kg.

Silver coin, however, remained unaltered at Rs 81,000 for buying and Rs 82, 000 for selling of 100 pieces.