Gold, silver turn cheaper on weak global cues

After rising for two days, gold prices went down by Rs 100 to Rs 26,850 per 10 grams at the bullion market on Tuesday, tracking a weak global trend amid slackened demand from jewellers.

Silver also eased by Rs 550 to Rs 36,150 per kg on reduced offtake by industrial units and coin makers.

Marketmen said the fall in gold prices was mostly attributed to a weak trend overseas as strengthening dollar reduced appeal for the precious metal and fall in demand from jewellers.

Gold in Singapore, which normally set price trend on the domestic front, fell 0.3 per cent to $1,176 an ounce and silver by 0.3 per cent to $15.72 an ounce.

In addition, recovery in the rupee against dollar at the forex market, making imports cheaper also put pressure on gold prices, they said.

The rupee was trading 8 paise higher at 63.76 (intra-day). In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 100 each to Rs 26,850 and Rs 26,700 per 10 grams respectively. It had gained Rs 270 in last two days.

Sovereign, however, continued to be traded at last level of Rs 23,300 per piece of eight gram.

Tracking gold, silver ready dropped by Rs 550 to Rs 36,150 per kg and weekly-based delivery by Rs 670 to Rs 35,710 per kg.

On the other hand, silver coins remained steady at Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.