Gold price inches up, silver falls

Gold prices gained marginally, in an otherwise listless and cautious trading on the bullion market in Mumbai on Saturday owing to stray buying support.

Silver, on the other hand softened on poor offtake.

Standard gold (99.5 purity) advanced by Rs 5 to settle at Rs 26,915 per 10 grams compared to overnight level of Rs 26,910.

Pure gold (99.9 purity) also looked up by similar margin to end at Rs 27,065 per 10 grams from Rs 27,060.

Silver (.999 fineness), however eased by Rs 5 to conclude at Rs 41,705 per kg against Friday's closing level of Rs 41,710.

Meanwhile, the metal plummeted to eight-month low in overseas trade as positive US macro data and also strengthening dollar fueled speculation that the Federal Reserve will further taper its monthly bond purchases.

Gold for December delivery settled sharply lower at $1,231.50 an ounce on the Comex division of the NYMEX late yesterday, while silver December contract finished up at $18.55 an ounce.