Gold weakens on muted demand

Gold prices softened by Rs 40 to Rs 31,350 per 10 grams at the bullion market today owing to slackened demand from local jewellers despite a firm trend overseas.

Silver also drifted lower by Rs 150 to Rs 39,000 per kg due to reduced offtake by industrial units and coin makers.

Bullion traders said, slackened demand from local jewellers and retailers at current levels, mainly weighed on the gold and silver prices, but a better trend overseas capped the slide.

Globally, gold rose 0.18 per cent to USD 1,313.20 an ounce and silver by 0.31 per cent to USD 16.22 an ounce in Singapore as a softer dollar raised demand for the precious metals as a safe haven.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 40 each to Rs 31,350 and Rs 31,200 per 10 grams, respectively. The precious metal had gained Rs 210 yesterday.

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

In step with gold, silver ready fell by Rs 150 to Rs 39,000 per kg and weekly-based delivery by Rs 215 to Rs 38,235 per kg.

Silver coins, however, continued to be traded at previous levels of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.