Gold weakens on muted demand; silver recovers

New Delhi: After rising for three days, gold prices softened by Rs 30 today to Rs 28,600 per 10 grams at the bullion market here due to fall in demand from local jewellers even as the metal strengthened overseas, helping cap a further decline.

Silver, however, gained Rs 400 to Rs 38,900 per kg due to increased offtake by industrial units and coin makers.

Marketmen said easing demand from local jewellers and retailers at existing levels weighed on gold prices but a firm trend overseas capped the fall.

Globally, gold rose 0.32 per cent to USD 1,234.30 an ounce. Silver too traded 0.60 per cent higher at USD 16.70 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 30 each to Rs 28,600 and Rs 28,450 per 10 grams respectively. It had gained Rs 230 in the past three sessions.

Sovereign also traded lower by Rs 100 to Rs 24,300 per piece of eight grams.

On the other hand, silver ready recovered by Rs 400 to Rs 38,900 per kg and weekly-based delivery by Rs 270 to Rs 38,720 per kg.

Silver coins were unaltered at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.