Gold price softens to Rs 28,700 per 10 grams

New Delhi: Gold prices slipped by Rs 40 to Rs 28,700 per 10 grams at Delhi bullion market Monday on weak demand from jewellers even as the metal strengthened in the global market.

A stronger trend overseas, however, capped the fall.

Delhi bullion market

In the national capital, gold of 99.9 percent and 99.5 percent purity were down by Rs 40 each to Rs 28,700 and Rs 28,550 per 10 grams respectively. It had gained Rs 30 in the Saturday's trade.

Silver ready drifted lower by Rs 50 to Rs 40,400 per kg and weekly-based delivery by Rs 45 to Rs 40,295 per kg.

MCX

At the Multi Commodity Exchange (MCX), gold for delivery in February was trading higher by Rs 17, or 0.06 percent, to Rs 27,904 per 10 grams.

Analysts said widening of positions by participants, tracking a firm lead from global market, influenced the precious metal prices in the futures trade here.

International markets

Globally, gold edged up slightly in a technical rebound today after one-month highs hit last week were undercut by the prospects of more interest rate hikes from the US Federal Reserve.

Spot gold edged 0.1 percent higher to USD 1,174.23 an ounce. Gold gained nearly two percent last week, its biggest weekly rise since early November, although it fell on Friday as Fed officials commented on data that pointed to an improving US economy.

US gold futures were up 0.1 percent at USD 1,174.10 per ounce.