Gold declined by Rs. 90 to Rs. 21,065 per 10 grams on Saturday, due to fall in demand at existing high levels, amid a weakening global trend. Silver, however, recovered by Rs. 75 to Rs. 56,400 per kg on fresh buying support.
Trading sentiments for the yellow metal turned bearish as it declined the most in two weeks in global market on speculation that the Federal Reserve will tighten U.S. monetary policy, curbing demand for the precious metal as an alternative investment.
Gold in global markets, which normally sets price trend on the domestic front, dropped by $11, or 0.8 per cent, to $1,428.90 an ounce, the biggest drop since March 15.
However, silver prices recovered on buying support by jewellers for the upcoming marriage and festival season of Navratras. Fresh buying by industrial units also supported the uptrend in the white metal.
On the domestic front, silver ready rose by Rs. 75 to Rs. 56,400 per kg and weekly-based delivery by Rs. 25 to Rs. 55,920 per kg, while silver coins held steady at Rs. 61,500 for buying and Rs. 62,000 for selling of 100 pieces.
On the other hand, gold of 99.9 and 99.5 per cent purity declined by Rs. 90 each to Rs. 21,065 and Rs. 20,945 per 10 grams, respectively. Sovereigns remained flat at Rs. 17,500 per piece of eight grams.