Gold, silver fall on sluggish demand, weak global cues

Both the precious metals, gold and silver, fell in the national capital on Friday on sluggish demand at prevailing higher levels and a weak global trend.

Gold slipped by Rs 25 to Rs 27,300 per 10 grams after touching three-week high of Rs 27,325 yesterday, while silver fell by Rs 220 to Rs 41,530 per kg after surging by Rs 1,400 in the previous session.

Traders said sluggish demand at prevailing higher levels amid a weak global trend as a stronger dollar curbed demand mainly led to decline in the precious metals prices.

Gold in London, which normally sets the price trend on the domestic front, fell by 0.7 per cent to $1,277.16 an ounce and silver by 1.7 per cent to $19.82 an ounce.

Besides, investors shifting their funds from bullion to rising equity markets for quick gains, dampened the sentiment, they said.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 25 each to Rs 27,300 and Rs 27,100 per 10 grams, respectively. Sovereigns held steady at Rs 24,200 per piece of eight grams in limited deals.

In line with a general weak trend, silver ready fell by Rs 220 to Rs 41,530 per kg and weekly-based delivery by Rs 170 to Rs 41,530 per kg, respectively.

Silver coins also dropped by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 (rpt) 80,000 for selling of 100 pieces.

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