Gold, silver prices decline on low demand, global cues

Gold prices declined by Rs 85 to Rs 27,200 per 10 grams at the bullion market today amid weak cues from global market and fall in domestic demand.

Silver also eased by Rs 200 to Rs 37,200 per kg on lack of buying support from industrial units and coin makers.

Traders said besides fall in demand from jewellers and retailers, a weak global trend mainly led to fall in prices of precious metals.

Gold in New York, which normally sets price trend on the domestic front, fell 0.50 per cent to $1,207.20 an ounce and silver shed 0.73 per cent at $16.38 an ounce in Thursday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity traded lower by Rs 85 each to Rs 27,200 and Rs 27,000 per 10 grams, respectively.

It had gained Rs 95 on Thursday.

Sovereign, however, continued to trade at last level of Rs 23,700 per piece of eight grams in scattered deals.

In a similar fashion, silver ready declined by Rs 200 to Rs 37,200 per kg and weekly-based delivery by Rs 260 to Rs 36,565 per kg.

On the other hand, silver coins were steady at Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.