Gold, silver prices decline on sluggish demand

After two days of gains, gold prices fell by Rs 60 to close at Rs 27,400 per 10 gram in New Delhi on Wednesday due to slackened demand from jewelers and retailers amid absence of cues from global markets.

Silver also lacked necessary follow-up support from industrial units and coin makers and shed Rs 110 to Rs 41,490 per kg.

Bullion merchants said subdued demand from jewellers and retailers in view of the ongoing "Sharads", considered to be an inauspicious fortnight for making new purchases, weighed on gold and silver prices.

In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 60 each to Rs 27,400 and Rs 27,200 per 10 gram, respectively.

It had gained Rs 90 in the previous two sessions. Sovereign, however, remained unaltered at Rs 24,400 per piece of eight gram in limited deals.

Globally, gold traded a shade higher at $1,235.40 an ounce in Singapore.

On similar lines, silver ready declined by Rs 110 to Rs 41,490 per kg and weekly-based delivery by Rs 190 to Rs 41,350 per kg. The white metal had gained Rs 350 in last two days.

Silver coins settled around previous level of Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.