Gold slips Rs 40 to Rs 39,600 on muted demand

Gold prices on Monday inched Rs 40 lower to Rs 39,600 per 10 gram at the bullion market here owing to lower demand from local jewellers, according to the All India Sarafa Association.

Silver, however, held steady against the previous level of Rs 48,800 per kg.

Traders said subdued demand from local jewellers led to the fall in gold prices. However, positive global trend restricted the fall in the yellow metal's prices, they said.

Globally, gold was trading marginally higher at USD 1,523.70 an ounce in New York. Silver, on the other hand, was slightly down at USD 18.41 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell Rs 40 each to Rs 39,600 and Rs 39,430 per 10 gram, respectively.

Similarly, sovereign gold declined by Rs 1,000 to Rs 29,100 per eight grams.

Prices of silver ready remained unchanged at Rs 48,800 per kg, while weekly-based delivery also held steady at Rs 46,742 per kg.

Silver coins traded flat at Rs 1,00,000 for buying and Rs 1,01,000 for selling of 100 coins.