Gold, silver weaken on muted demand

Gold fell by Rs 85 to Rs 30,365 per 10 gram at the bullion market today on sluggish demand from jewellers amid a weak trend in the overseas market.

Silver followed suit and shed Rs 210 to Rs 39,640 per kg due to reduced offtake by industrial units and coin makers.Traders attributed the decline in gold prices to subdued demand from local jewellers and retailers at the domestic spot market.

Besides, a muted trend in global market where gold retreated from over 3-1/2 month highs due to a firmer dollar on expectations of further US interest rate hike, eroding appeal of the safe-haven precious metal, led to decline in the prices.

Globally, gold shed 0.40 per cent to USD 1,307.30 an ounce in Singapore.In the national capital, gold of 99.9 per cent and 99.5 per cent purity were down by Rs 85 each to Rs 30,365 and Rs 30,215 per 10 gram respectively.Sovereign however remained flat at Rs 24,700 per piece of eight gram.

Silver ready drifted lower by Rs 210 to Rs 39,640 per kg and weekly-based delivery by Rs 45 to Rs 38,980 per kg.On the other hand, silver coins continued to be traded at last level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.