Gold weakens on muted demand; silver remains flat

After yesterday's gain, gold slipped by Rs 90 to Rs 25,420 per ten grams at the bullion market today, owing to slackened demand from jewellers and retailers amid absence of overseas cues.

Silver however remained steady at Rs 33,300 per kg in limited deals.

Traders said apart from fall in demand from jewellers and retailers at prevailing levels, absence of cues from overseas markets which are closed for the New Year, mainly led to the decline in gold prices.

In the national capital, gold of 99.9 and 99.5 per cent purity traded lower by Rs 90 each to Rs 25,420 and Rs 25,270 per ten grams respectively. The precious metal had gained Rs 120 yesterday.

Sovereign, however, pegged unchanged at previous level of Rs 22,200 per piece of eight grams in scattered deals.

On the other hand, silver ready remained steady for the second straight day at Rs 33,300 per kg in the absence of any worthwhile activity, while weekly-based delivery eased by Rs 17 to Rs 33,335 per kg.

Meanwhile, silver coins spurted by Rs 1,000 to Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.