Gold stays subdued on muted demand

Gold's downward movement continued for the second straight day as prices fell by Rs 130 to trade at over two-week low of Rs 32,000 per 10 grams at the bullion market today owing to slackened demand from local jewellers, shrugging-off positive global cues.

Silver followed suit and shed Rs 50 to Rs 40,200 per kg due to reduced offtake by industrial units and coin makers.

Traders said fading demand from local jewellers and retailers at the domestic spot market kept the precious metals lower but a firm trend overseas capped the fall.

Globally, gold rose 0.34 per cent to USD 1,309 an ounce and silver by 0.43 per cent to USD 16.42 an ounce in Singapore after the US Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited US-China trade talks.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted down by Rs 130 each to Rs 32,000 and Rs 31,850 per 10 grams, respectively, a level last seen on April 16. It had lost Rs 70 yesterday.

Sovereign also weakened by Rs 100 to Rs 24,700 per piece of eight grams.

In step with gold, silver ready declined by Rs 50 to Rs 40,200 per kg, while weekly-based delivery advanced by Rs 195 to Rs 38,915 per kg.

Silver coins dropped by Rs 1,000 to Rs 74,000 for buying and Rs 7,5000 for selling of 100 pieces.