Gold loses sparkle on muted demand, silver gets into shape

Gold prices softened by Rs 50 to Rs 29,500 per 10 grams at the bullion market today due to slack demand even as the precious metal firmed up overseas. Silver was better-off as it recovered by Rs 50 to Rs 38,500 per kg on the back of scattered buying support from industrial units.

Traders said cooling demand from retailers at the existing level mainly caused the decline in gold prices, but a firm trend overseas stemmed the losses. Globally, gold rose 0.82 per cent to USD 1,242.60 an ounce in Singapore today.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity remained weak and slumped Rs 50 each to Rs 29,500 and Rs 29,350 per 10 grams, respectively. Sovereign, however, traded at the previous level of Rs 23,100 per piece of 8 grams.

On the other hand, silver ready recouped Rs 50 at Rs 38,500 per kg while weekly-based delivery shed Rs 25 at Rs 38,320. Silver coins went steady at Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.