Gold remains weak on global cues, subdued demand

Gold prices fell by Rs 80 at Rs 27,150 per 10 grams at the bullion market on Wednesday amid a weak trend overseas. Besides, subdued demand from jewellers and retailers kept pressure on prices of the precious metal.

On the other hand, silver held steady at Rs 38,000 per kg on scattered support from industrial units.

Traders said apart from easing demand from jewellers and retailers, a weak global trend as strengthening dollar reduced demand for the metal as an alternative investment, influenced the sentiment.

Gold in New York, which normally sets price trend on the domestic front, fell by 0.52 per cent to $1,207.70 an ounce and silver by 0.83 per cent to  $16.83 an ounce in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 80 each to Rs 27,150 and Rs 27,000 per 10 grams, respectively.

It had shed Rs 20 yesterday. Sovereign, however, continued to trade at Rs 23,700 per piece of eight grams in limited deals.

On the other hand, silver ready held steady at Rs 38,000 per kg, while weekly-based delivery traded lower by Rs 170 to Rs 37,720 per kg due to lack of speculative support.

Meanwhile, silver coins remained flat at Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces.