Gold loses sheen, silver down on tepid demand

Halting its two-day rising trend, gold prices declined by Rs. 135 to trade below Rs. 29,000 at Rs. 28,865 per 10 gram at the bullion market on Thursday owing to slackened demand by jewellers and retailers at prevailing level even as the precious metal firmed up overseas.

Silver also moved down by Rs. 160 to Rs. 38,600 per kg due to reduced off-take by industrial units and coin makers. Traders said easing demand from jewellers and retailers at the prevailing higher level mainly caused the decline in gold prices, but a better trend overseas capped the fall.

Globally, gold rose by 0.21 per cent to $ 1,215.30 an ounce and silver by 0.19 per cent to $ 15.95 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted lower by Rs. 135 each to Rs. 28,865 and Rs. 28,715 per 10 grams, respectively. The precious metals had gained Rs. 335 in last two days. Sovereign also declined by Rs. 100 to Rs. 22,800 per piece of eight grams.

Following gold, silver ready too softened by Rs. 160 to Rs. 38,600 per kg and weekly-based delivery by Rs. 70 to Rs. 38,495 per kg. On the other hand, silver coins continued to be traded at previous level of Rs. 66,000 for buying and Rs. 67,000 for selling of 100 pieces.