Gold turns weak on muted demand, silver remains up

New Delhi: Gold prices softened by Rs 25 to Rs 30,225 per ten grams on Friday, halting its five-day long winning run, owing to slackened demand from local jewellers at prevailing levels even as the metal strengthened overseas.

However, silver rose further by Rs 200 to Rs 39,700 per kg due to increased offtake by industrial units and coin makers.

Traders said easing demand from local jewellers and retailers at the spot market mainly led to a decline in gold prices but a firm trend overseas squeezed the slide.

Globally, gold rose 0.05 percent to USD 1,295.30 an ounce in Singapore.

Diversion of funds towards the soaring equity market and an appreciating rupee against the dollar also weighed on gold prices.

In the national capital, gold of 99.9 percent and 99.5 percent purity shed Rs 25 each to Rs 30,225 and Rs 30,075 per ten grams, respectively. It had gained Rs 565 in the previous five sessions.

Sovereign however remained unaltered at Rs 24,700 per piece of eight gram.

On the other hand, silver ready advanced by Rs 200 to Rs 39,700 per kg, while weekly-based delivery eased by Rs 60 to Rs 38,790 per kg.

Silver coins spurted by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.