Gold prices weaken on sluggish demand from jewellers, retailers

Gold prices fell by Rs 60 to trade at Rs 26,315 per 10 grams at the bullion market on Friday on slackened demand from jewellers and retailers at prevailing levels even as the precious metal strengthened overseas.

Bullion traders attributed the fall in gold prices to easing demand from jewellers and retailers at current levels but a firming trend in the precious metal overseas, capped the losses.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 60 and Rs 10 to Rs 26,315 and Rs 26,165 per 10 grams, respectively. It had spurted by Rs 375 on Thursday. Sovereign, however, remained flat at Rs 23,600 per piece of eight grams in scattered deals.

Silver prices, however, gained Rs 350 to Rs 36,550 per kg on increased offtake by industrial units and coin makers.

Globally, gold traded higher by 0.35 per cent to US $1,171 an ounce and silver by 1.38 per cent to US $16.11 an ounce in New York in Thursday's trade.

On the other hand, silver ready advanced by Rs 350 to Rs 36,550 per kg and weekly-based delivery by Rs 355 to Rs 36,265 per kg. Meanwhile, silver coins held steady at Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.