Gold stays subdued on global cues, low demand

Falling for the second straight day, gold prices drifted lower by Rs 85 to Rs 32,225 per 10 grams at the bullion market today in tandem with a weak trend overseas amid tepid demand from local jewellers.

Silver also slumped below the Rs 41,000-mark by falling Rs 850 to Rs 40,500 per kg due to poor offtake by industrial units and coin makers.

Traders said, besides a weak trend overseas, fall in demand from local jewellers and retailers at the domestic spot market kept the precious metals lower.

Globally, gold fell 0.82 per cent to USD 1,324.20 an ounce and silver by 2.99 per cent to USD 16.58 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 85 each to Rs 32,225 and Rs 32,075 per 10 grams, respectively. It had lost Rs 140 yesterday.

Sovereign also weakened by Rs 100 to Rs 24,800 per piece of eight grams.

In step with gold, silver ready dropped by Rs 850 to Rs 40,500 per kg and weekly-based delivery fell by Rs 825 to Rs 39,475 per kg.

Silver coin too dropped by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.