Gold, silver fall on sluggish demand, global cues

Gold fell by Rs 200 to Rs 31,425 per 10 grams in the national capital on Wednesday on sluggish demand at prevailing higher levels amid a weak global trend.

Silver also plunged by Rs 510 to Rs 45,280 per kg on lack of buying support from jewellers and industrial units.

A weak global trend on speculation that signs of a strengthening US economy might reduce demand for the precious metals as safe haven also influenced the sentiment, traders said.

Gold in New York, which normally sets the price trend on the domestic front, fell by 0.8 per cent to $1,241.58 an ounce and silver by 1.8 per cent to USD 19.86 an ounce on Tuesday night.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 200 each to Rs 31,425 and Rs 31,225 per ten grams, respectively.

It gained Rs 575 on Tuesday.

Sovereign, however, held steady at Rs 25,300 per piece of eight grams in restricted buying.

In line with a general weak trend, silver ready declined by Rs 510 to Rs 45,280 per kg and weekly-based delivery by a similar margin to Rs 44,480 per kg.

The white metal had jumped by Rs 790 in the previous session.

Silver coins also met with resistance at existing higher levels and plunged by Rs 1,000 to Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.