Gold price falls on sluggish demand, global cues

Gold prices declined further by Rs 50 to Rs 27,000 per ten gram at the bullion market on Friday owing to easing demand from jewellers and retailers amid a weak global trend.

Silver also traded lower by Rs 100 to Rs 37,200 per kg on lack of buying support from industrial units and coin makers.

Traders said besides falling demand from ornament makers, a weak global trend mainly kept pressure on gold prices.

Gold in Singapore, which determines price trend on the domestic market, fell by 0.33 per cent to $1,205.20 an ounce.

Shifting of funds towards surging equity market also dampened the sentiment to some extent, they added.

In the national capital, gold of 99.9 and 99.5 per cent purity were down by Rs 50 each to Rs 27,000 and Rs 26,800 per ten gram, respectively. It had shed Rs 20 on Thursday.

Sovereign, however, enquired at previous level of Rs 23,650 per piece of eight gram.

Similarly, silver ready moved down by Rs 100 to Rs 37,200 per kg and weekly-based delivery by Rs 205 to Rs 36,595 per kg.

On the other hand, silver coins continued to be asked at last level of Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.