Gold price softens by Rs 50 to Rs 31,200 per 10 grams

Gold prices stayed soft as it fell by Rs 50 to Rs 31,200 per 10 grams Monday, reflecting a weak trend overseas amid muted demand from jewellers in the domestic spot market.  

PTI| Updated: Aug 29, 2016, 15:32 PM IST
Gold price softens by Rs 50 to Rs 31,200 per 10 grams

New Delhi: Gold prices stayed soft as it fell by Rs 50 to Rs 31,200 per 10 grams Monday, reflecting a weak trend overseas amid muted demand from jewellers in the domestic spot market.

Silver also dropped Rs 300 to Rs 44,400 per kg on reduced offtake by industrial units and coin makers.

Traders said sentiment was dampened following a weak trend overseas where gold dropped for the seventh straight day, heading for the longest run of decline since May after Federal Reserve chief Janet Yellen hinted at a US interest rate hike by the end of the year, strengthening the dollar and eroding demand for the precious metal as a safe haven.

Globally, gold lost 0.4 percent to USD 1,316.09 an ounce, the lowest since July 27 in Singapore.

Besides, sluggish demand from jewellers and retailers at the domestic spot market weighed, they said.

In the national capital, gold of 99.9 percent and 99.5 percent purity declined Rs 50 each to Rs 31,200 and Rs 31,050 per 10 grams, respectively. The precious metal had gained Rs 100 in Saturday's trade.

Sovereign, however, remained unchanged at Rs 24,300 per piece of eight grams in limited deals.

Following gold, silver ready drifted lower by Rs 300 to Rs 44,400 per kg and weekly-based delivery by Rs 205 to Rs 43,770 per kg.

Silver coins, however, remained flat at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.