Gold prices subdued on global cues, low demand

Falling for the second straight day, gold prices drifted lower by Rs 40 to Rs 32,550 per 10 grams at the bullion market Saturday amid tepid demand from local jewellers and a weak trend overseas. Silver, however, recovered by Rs 100 to Rs 39,600 per kg on back of increased offtake by industrial units.

Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers at the domestic spot markets kept the prices of the precious metal lower. Globally, gold eased to USD 1,233.80 an ounce in New York Friday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 40 each to Rs 32,550 and Rs 32,400 per 10 grams respectively. It had lost Rs 35 on Friday. Sovereign gold, also weakened by Rs 100 to Rs 24,700 per piece of eight grams.

On the other hand, silver ready staged a comeback by rising Rs 100 to Rs 39,600 per kg, while silver weekly based delivery fell by Rs 50 to Rs 38,710 per kg. Silver coins, however, were unaltered at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.