Gold weakens on muted demand; silver rises

Gold prices drifted lower by Rs 100 to Rs 33,170 per 10 grams at the bullion market here Saturday owing to weak demand from jewellers even as the metal strengthened overseas.

On the other hand, silver rallied by Rs 800 to Rs 39,900 per kg due to increased offtake by industrial units and coin makers.

Traders said easing demand from local jewellers as well as retailers at the domestic spot market led to the decline in prices, but a firm trend overseas capped the fall.

Globally, gold rebounded from multi-week lows to USD 1,298.70 an ounce in New York on Friday as the dollar slipped ahead of a key US jobs report and investors fretted over increased signs of a global slowdown. Silver surged to USD 15.31 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 100 each to Rs 33,170 and Rs 33,000 per 10 grams respectively. The yellow metal had gained Rs 200 in Friday's trade.

Sovereign gold, however, remained flat at Rs 26,400 per piece of eight grams.

On the other hand, silver ready rebounded by Rs 800 to Rs 39,900 per kg and weekly-based delivery rose by Rs 418 to Rs 38,728 per kg.

Silver coins continued to be traded at the last level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.