Gold falls on reduced off-take, weak global cues

Gold prices fell by Rs.130 to Rs. 31,240 per ten grams on Wednesday due to reduced off-take at existing higher levels amidst a weak global trend.

Silver also fell further by Rs. 720 to Rs. 52,610 per kg on lack of buying support from industrial units and coin makers amid a weak global trend.

Traders said besides reduced off-take at existing higher levels, weak trend in global markets mainly kept pressure on the prices of precious metals.

Gold in New York, which normally set price trend on the domestic front, fell by $ 23.20 dollar to $ 1363.30 dollar an ounce and silver by 3.14 per cent to $ 22.97 dollar on Tuesday night.

On the domestic front, gold of 99.5 per cent purity fell to Rs. 31,040 per ten grams. The yellow metal had gained Rs. 270 on Tuesday. Sovereign remained steady at Rs. 25,200 in limited deals.

Silver’s and weekly—based delivery fell by Rs. 690 to Rs. 52,610 per kg. The white metal had lost Rs. 970 in the previous session.

However, silver coins held steady at Rs. 87,000 for buying and Rs. 88,000 for selling of 100 pieces in restricted buying.