Gold, silver slump on global cues, low demand

Gold prices dropped by Rs 100 to Rs 26,250 per 10 grams at the bullion market in the national capital on Tuesday on weak global trend amid low demand from jewellers.

Silver also declined by Rs 250 to Rs 35,400 per kg on reduced offtake by industrial units.

Traders said a weak trend overseas where gold fell for the second consecutive day after Greece reached a bailout deal with its creditors, damping demand for the metal as a safe-haven asset and shifting investors' focus to the probable timing of a US rate increase, mainly pulled down the precious metal's prices. In addition, a stronger dollar also weighed on prices, they said.

Gold in Singapore, which normally determine price trend on the domestic front, lost 0.3 per cent to $ 1,154.93 an ounce and silver was 0.9 per cent lower at $15.37 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity declined by Rs 100 each to Rs 26,250 and Rs 26,100 per 10 grams, respectively. It had gained Rs 20 yesterday.

Sovereign, however, held steady at Rs 23,000 per piece of eight grams in scattered deals. Following gold, silver ready fell by Rs 250 to Rs 35,400 per kg and weekly-based delivery by Rs 135 to Rs 35,330 per kg.

Silver coins, however, remained unchanged at previous level of Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.