Gold falls Rs 220 on weak global cues, low demand

New Delhi: Gold prices went down by Rs 220 to Rs 31,450 per 10 grams at the bullion market on Thursday backed by a weak trend overseas amid easing demand from local jewellers at prevailing levels.

Silver also dropped by Rs 400 to Rs 39,500 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend overseas, decline in demand from local jewellers and retailers at existing levels in domestic spot market, mainly weighed on the gold and silver prices.

Globally, gold fell 0.70 per cent to USD 1,324.90 an ounce and silver by 0.53 per cent to USD 16.47 an ounce in New York in on Wednesday’s trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 220 each to Rs 31,450 and Rs 31,300 per 10 grams, respectively.

The precious metals had climbed Rs 220 on Wednesday. Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams in limited deals.

Following gold, silver ready moved down by Rs 400 to Rs 39,500 per kg and weekly-based delivery by Rs 470 to Rs 38,770 per kg. Silver coins, however, continued to be traded at previous levels of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.