Gold, silver futures fall on weak global cues, fall in demand

Gold and silver prices fell in futures trade on Friday, as speculators offloaded their positions, tracking a weak trend in the global market and fall in domestic demand.

Gold fell by 0.82 per cent to Rs 27,246 per 10 grams in futures trade and silver prices declined by 0.58 per cent to Rs 64,390 per kg.

Trading sentiment remained bearish after gold fell in the global market, as the world's major central banks moved to ease funding for European banks in a coordinated effort to solve Europe's debt crisis, reducing appeal for the precious metal as an alternative investment.

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Sluggish demand at existing higher levels in the spot market further fuelled the downtrend.

At the Multi Commodity Exchange, gold for delivery in October month fell by Rs 224, or 0.82 per cent, to Rs 27,246 per 10 grams, with a business turnover of 1,720 lots, whereas silver for delivery in March contract fell by Rs 376, or 0.58 per cent to Rs 64,390 per kg in a business turnover of 61 lots.

Likewise, the metal for delivery in December lost Rs 224, or 0.81 per cent, to Rs 27,570 per 10 grams, with an open interest of 152 lots.

Meanwhile, gold declined by $23 to $1,766.80 an ounce in Asia. Silver in Singapore fell 1.05 per cent to $39.49 an ounce.