Gold and silver go down in sync with weakened demand

Echoing slow global trend and struck by a significant fall in domestic demand, gold prices have fallen by Rs 250 to Rs 30,450 per 10 grams on Tuesday.

Silver too declined by Rs 400 to Rs 40,400 per kg on poor offtake by industrial units and coin makers.

Traders said sentiment was downbeat, largely in keeping with a weak global trend as the dollar surged against a basket of currencies that eroded the metals' appeal as safe-haven assets coupled with fall in demand from local jewellers and retailers at the domestic spot markets.

Diversion of funds towards the soaring equity markets also weighed on the prices, they said.

In Delhi, gold of 99.9 per cent and 99.5 per cent purity dropped by Rs 250 each to Rs 30,450 and Rs 30,300 per 10 grams, respectively. Sovereign, however, remained unaltered at Rs 24,700 per piece of eight gram in limited deals.

Silver dropped by Rs 400 to Rs 40,400 per kg and weekly-based delivery by Rs 505 to Rs 39,395 per kg.

Silver coins, however, maintained a steady trend at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces. 

(With PTI inputs)