Gold, silver down on sluggish demand

Gold and silver prices dropped in the national capital on Tuesday, owing to slackened demand at prevailing higher levels amid a weak global trend.

While gold fell by Rs 260 to Rs 27,050 per 10 grams, silver lost Rs 630 to Rs 41,100 per kg on reduced offtake by jewellers and industrial units.

Traders said sluggish demand at prevailing higher levels amid a weak global trend — on concerns that recent gains may deter physical purchases — mainly influenced the sentiment.

Gold in Singapore, which normally sets the price trend on the domestic front, lost 0.6 per cent to USD 1,277.29 an ounce and silver fell by 1.3 per cent to USD 19.71 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 260 each to Rs 27,050 and Rs 26,850 per 10 grams, respectively. Sovereigns followed suit and shed Rs 50 to Rs 24,150 per piece of eight grams.

Silver ready dropped by Rs 630 to Rs 41,100 per kg and weekly-based delivery fell by Rs 625 to Rs 41,100 per kg. Silver coins also plunged by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.