Gold slips Rs 100 to Rs 38,570 on muted demand, weak overseas trend

Gold prices on Monday declined by Rs 100 to Rs 38,570 per 10 gram in the national capital, tracking weak trend overseas and lacklustre demand from jewellers, according to the All India Sarafa Association.

Gold had reached its all-time high mark of Rs 38,670 on Saturday.

Silver also fell by Rs 50 to Rs 45,000 per kg due to reduced offtake by industrial units and coin makers.

Traders said easing demand from local jewellers amid weak global trend mainly weighed on gold prices.

Globally, spot gold was trading 0.98 per cent lower at USD 1,499 an ounce in New York, while silver was down 0.18 per cent to USD 17.00 an ounce.

"Gold prices witnessed selling after positive market sentiment with rise in global equity indices which underpinned demand for safe haven assets. Global equity markets traded firm after Germany and China signalled stimulus measures to support economic recovery," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity reduced Rs 100 to Rs 38,570 and Rs 38,400 per 10 gram, respectively.

Sovereign gold held steady at 28,800 per eight gram.

On Saturday, gold had risen by Rs 250 to Rs 38,670 per 10 gram, while silver gained Rs 362 to Rs 45,050 per kg.

Meanwhile, silver ready dropped by Rs 50 to 45,000 per kg on Monday, while weekly-based delivery fell Rs 289 to Rs 43,535 per kg.

Price of silver coins held flat at Rs 91,000 for buying and Rs 92,000 for selling of 100 pieces.