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Gold price falls on sluggish demand, silver recovers

Gold price falls on sluggish demand, silver recovers

Bullion traders said easing demand from jewellers and retailers at prevailing levels mainly kept pressure on gold prices.

Gold prices fell further by Rs 25 to Rs 26,675 per ten grams at the bullion market on Wednesday owing to slackened demand from jewellers and retailers even as the metal strengthened overseas.

However, silver recovered by Rs 130 to Rs 35,330 per kg on scattered buying by industrial units and coin makers.

Bullion traders said easing demand from jewellers and retailers at prevailing levels mainly kept pressure on gold prices.

They said, however, firm global trend where gold gained on weakness in the dollar, capped the fall.

Globally, gold climbed 0.4 per cent to $1,125.48 an ounce and silver rose 0.1 per cent to $14.80 an ounce after advancing 2 per cent on Tuesday in Singapore.

The rupee strengthening against the dollar, making imports cheaper, also influenced gold prices, they added.

In the national capital, gold of 99.9 and 99.5 per cent purity shed another Rs 25 each to Rs 26,675 and Rs 26,525 per ten grams, respectively. The precious metal had lost Rs 140 on Tuesday.

Sovereign also lost Rs 100 at Rs 22,200 per piece of eight gram.

On the other hand, silver ready recovered by Rs 130 to Rs 35,330 per kg and weekly-based delivery by Rs 700 to Rs 35,800 per kg speculative buying.

Meanwhile, silver coins continued to be asked at previous level of Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.