Gold falls on sluggish demand, weak global cues

Gold prices fell by Rs 160 to Rs 30,000 per ten grams in New Delhi on sustained selling by stockists against sluggish demand amid a weak global trend.

Silver also dropped by Rs 1,050 to Rs 44,300 per kg on reduced offtake by industrial units, particularly coin makers, amid weak global cues.

In Mumbai, gold of 99.9 and 99.5 per cent purity traded at Rs 29,850 and Rs 29,700 per ten grams, respectively, while silver enquired at Rs 45,000 per kg.

Traders said sustained selling by stockists against sluggish demand and a weak global trend as strengthening dollar reduced the metal's appeal as an alternative investment mainly led to the fall in the prices of the precious metal.

Gold in Singapore, which normally sets price trend on the domestic front, fell 0.5 per cent to $1,225.71 an ounce and silver by 1.1 per cent to $19.64 an ounce.

At the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 160 each to Rs 30,000 and Rs 29,800 per ten grams, respectively. Sovereign declined by Rs 100 to Rs 25,000 per piece of eight gram.

Silver ready dropped by Rs 1,050 to Rs 44,300 per kg and weekly-based delivery by Rs 1,200 to Rs 44,300 per kg.

Silver coins, however, held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.