Gold, silver turn lower on global cues, muted demand

New Delhi: Amid a weak trend overseas and subdued demand from jewellers at the domestic spot market, gold prices declined Rs 10 to Rs 25,810 per 10 grams at the bullion market Friday.

Silver also eased by Rs 150 to Rs 34,250 per kg on reduced offtake by industrial units and coin makers.

Bullion traders said that besides a weak global trend, expectations of an increase in US borrowing costs by the end of the year buoyed the dollar, curbing the precious metals' appeal. Easing demand from jewellers at prevailing levels also led to fall in prices.

Globally, gold was down 0.4 percent at USD 1,068.36 an ounce in Singapore while the precious metal fell 0.38 percent to USD 1,067.50 in London. The US markets were closed yesterday for the Thanksgiving holiday.

In the national capital, gold of 99.9 percent and 99.5 percent purity shed Rs 10 each to Rs 25,810 and Rs 25,660 per 10 grams, respectively.

Sovereign, however, remained flat at Rs 22,200 per piece of eight grams.

Tracking gold, silver ready fell Rs 150 to Rs 34,250 per kg and weekly-based delivery by Rs 205 to Rs 33,825 per kg.

On the other hand, silver coins continued to be traded at the previous level of Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.