Gold slips on global cues, silver remains up on rising demand

Gold prices drifted lower by Rs 75 to Rs 31,650 per 10 grams at the bullion market Wednesday, breaking its two-day rising streak, tracking a weak trend overseas amid easing demand from local jewellers.

However, silver advanced by Rs 460 to Rs 38,750 per kg on the back of increased offtake by industrial units and coin makers.

Traders said sentiment turned bearish largely in sync with a weak trend overseas where gold prices edged down Wednesday as investors awaited policy cues from the US Federal Reserve, which is widely expected to raise interest rates.

Globally, gold fell 0.07 per cent to USD 1,200 an ounce in Singapore.

Besides, fall in demand from local jewellers and retailers at prevailing levels at domestic spot market, too weighed on gold prices, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 75 each to Rs 31,650 and Rs 31,500 per ten grams, respectively. The precious metal had gained Rs 275 in the previous two days.

Sovereign gold, however, pegged at previous level of Rs 24,500 per piece of eight grams in scattered deals.

On the other hand, silver ready surged by Rs 460 to Rs 38,750 per kg and weekly-based delivery by Rs 535 to Rs 38,260 per kg.

Meanwhile, silver coins remained steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.