Gold falls on low demand; silver rises on global cues

Gold prices fell by Rs 40 to Rs 27,630 per 10 grams at the bullion market on Saturday as demand from jewellers and retailers eased at current levels even as the precious metals strengthened overseas.

However, silver climbed by Rs 600 to Rs 38,700 per kg on increased offtake by industrial units along with higher global trend.

Traders said slackened demand from jewellers and retailers at prevailing levels mainly led to the decline in gold prices.

However, a firming trend in global markets where gold rose by 0.5 per cent to $1,227.10 an ounce in New York, restricted the fall.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 40 each to Rs 27,630 and Rs 27,430 per 10 grams, respectively.

Sovereign followed suit and lost Rs 100 at Rs 23,700 per piece of eight grams.

On the other hand, silver ready spurted by Rs 600 to Rs 38,700 per kg after the white metal surged three per cent to $17.29 an ounce in New York on Friday.

Silver weekly-based delivery also rose by Rs 545 to Rs 38,185 per kg.

Globally, silver spurted by three per cent to $17.29 an ounce.

However, silver coins plunged by Rs 1,000 to Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces on fall in demand.