Gold, silver turn weak on global cues, sluggish demand

Subdued demand from jewellers and retailers also dampened the sentiment, they said.

Gold prices drifted by Rs. 140 to Rs. 27,200 per ten grams at the bullion market on Thursday largely in tandem with a weak trend in global market and slackened demand from jewellers and retailers.

Silver also dropped by Rs. 300 to Rs. 38,400 per kg on poor offtake by industrial units and coin makers.

Bullion traders said sentiment turned bearish after gold traded at a near three-week low in global markets before the release of monthly data on the U.S. employment that will provide clues on the outlook for borrowing costs in the world’s largest economy.

Globally, gold was 0.1 per cent lower at $1,183.66 an ounce and silver lost 0.2 per cent to $16.49 an ounce in Singapore.

Subdued demand from jewellers and retailers also dampened the sentiment, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs. 140 each to Rs. 27,200 and Rs. 27,050 per ten gram, respectively. The precious metal had gained Rs. 115 in last two days.

Sovereign, however, continued to be traded at last level of Rs. 23,700 per piece of eight gram for want of buying support.

Following gold, silver ready fell by Rs. 300 to Rs. 38,400 per kg and weekly-based delivery by Rs. 515 to Rs. 37,930 per kg.

Silver coins also plummeted by Rs. 1,000 to Rs. 55,000 for buying and Rs. 56,000 for selling of 100 pieces.