weak demand for Gold falls Rs 105 on global cues

New Delhi: Gold prices drifted lower by Rs 105 to Rs 32,370 per 10 grams at the bullion market today, halting its four-day rising streak on the back of weak global cues amid easing demand from local jewellers at prevailing higher levels. Silver followed suit and dropped by Rs 350 to Rs 41,200 per kg backed by reduced offtake by industrial units and coin makers.

Traders said besides weak trend overseas, as strength in dollar against other currencies overseas eroded the appeal of the precious metal as a safe-haven investment, fall in demand from local jewellers and retailers at existing higher levels at domestic spot market weighed on the prices. Gold prices fell 0.22 per cent to USD 1,301.20 an ounce and silver by 0.99 per cent to USD 16.47 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 105 each to Rs 32,370 and Rs 32,220 per 10 grams, respectively. The precious metals had gained Rs 600 in the previous four sessions. Sovereign gold, however, remained unaltered at Rs 24,800 per piece of eight grams in limited deals. Following gold, silver ready plunged by Rs 350 to Rs 41,200 per kg and weekly-based delivery by Rs 495 to Rs 40,265 per kg. Silver coins, however, were unaltered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.