Gold slips Rs 100 on global cues, low demand

Gold prices fell by Rs 100 to Rs 31,550 per 10 gram at the bullion market Thursday due to a weak trend overseas and muted demand from local jewellers.

Silver prices also dropped by Rs 300 to Rs 38,450 per kg owing to reduced offtake by industrial units and coin makers.

Traders said besides weak trend overseas following the US Federal Reserve rate hike for the third time this year, a fall in demand at the domestic spot market pushed gold prices down.

Globally, gold fell by 0.56 per cent to USD 1,194.10 an ounce and silver by 0.94 per cent to USD 14.30 an ounce in New York in Wednesday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 100 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The precious metal had lost Rs 75 in Wednesday's trade.

Sovereign gold, however, remained steady at Rs 24,500 per piece of 8 gram.

Following gold, silver ready plunged by Rs 300 to Rs 38,450 per kg and weekly-based delivery by Rs 290 to Rs 37,970 per kg.

Silver coins, however, continued to be asked at previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.