Gold stays weak on global cues, low demand

Continuing its fall for the second straight day, gold prices drifted down by another Rs 150 to Rs 31,800 per 10 gram at the bullion market today largely in tandem with a subdued trend overseas amid muted demand from local jewellers.

However, silver reclaimed the Rs 41,000-mark by spurting Rs 1,110 to Rs 41,560 due to increased offtake by industrial units and coin makers.

Traders said sentiment in gold remained downbeat on the back of weak global cues where gold dropped, weighed down by a stronger dollar amid encouraging signs of an historic US-North Korea summit in Singapore and a likely interest rate hike by the US Federal Reserve, eroding demand for the precious metal as a safe haven.

Globally, gold fell 0.19 per cent to USD 1,297.50 an ounce in Singapore.

Besides, fall in demand from local jewellers and retailers at the domestic spot market too weighed on gold prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 150 each to Rs 31,800 and Rs 31,650 per 10 gram, respectively. The precious metal had lost Rs 100 yesterday.

Sovereign gold, however, remained unaltered at Rs 24,800 per piece of eight grams.

On the other hand, silver ready rallied by Rs 1,110 to Rs 41,560 per kg and weekly-based delivery by Rs 125 to Rs 40,660 per kg.

Silver coins, however, continued to be traded at previous level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.