Gold loses sheen, falls Rs 150 on lacklustre demand

Gold prices on Monday fell Rs 150 to Rs 32,720 per 10 gram in the national capital due to lacklustre demand from local jewellers amid weak trend overseas, according to the All India Sarafa Association.

Tracking gold, silver also plunged Rs 250 to Rs 37,350 per kg on reduced offtake by industrial units and coin makers.

Sentiments weakened on the back of a subdued global trend, and the fall in demand from local jewellers also put pressure on the precious metal, traders said.

Moreover, gain in domestic equity markets and rupee also weighed on bullion prices, they added.

Domestic benchmark indices extended their rally Monday with the Sensex skyrocketing 1,300 points and the Nifty touching 11,800 mark, as investors cheered exit poll results that showed a likely win for the ruling NDA in the general elections.

The rupee on Monday also appreciated by 63 paise to 69.60 per dollar during the trade driven by exit polls and firming crude oil prices.

Globally, spot gold was trading lower at USD 1,275.30 an ounce, while silver was down at USD 14.43 an ounce in New York. In the national capital, gold of 99.9 per cent and 99.5 per cent purities dropped by Rs 150 each to Rs 32,720 and Rs 32,550 per 10 grams, respectively.

Sovereign gold, however, held steady at Rs 26,500 per eight grams. On Saturday, gold prices had fallen by Rs 300 to Rs 32,870 per 10 grams. Meanwhile, silver ready Monday dropped by Rs 250 to Rs 37,350 per kg, while weekly-based delivery slumped Rs 416 to Rs 36,161 per kg.

On the other hand, silver coins held flat at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.