Gold extends slide on weak global cues, muted demand

New Delhi: Gold prices fell by Rs 225 to Rs 29,575 per ten grams at the bullion market today, tracking a weak trend overseas amid subdued demand from jewellers at domestic spot market.

Silver followed suit and dropped by Rs 150 to Rs 40,200 per kg due to reduced offtake by industrial units and coin makers.

Marketmen said sentiment remained bearish largely in step with a weak global trend and an easing demand from jewellers and retailers at current levels at the domestic spot markets.

Globally, gold fell by 1.27 percent to USD 1,232.20 an ounce and silver by 0.09 per cent to USD 16.96 an ounce in New York in yesterday's trade.

Meanwhile, government said on Friday a panel headed by former chief Economic Advisor Ashok Lahiri will look into the grievances of jewellers with regard to compliance and operating procedures for payment of excise duty on jewellery.

In the national capital, gold of 99.9 and 99.5 percent purity plunged by Rs 225 each to Rs 29,575 and Rs 29,425 per ten grams, respectively. The precious metal had lost Rs 100 yesterday.

Sovereign, however, remained steady at Rs 23,200 per piece of eight grams.

In line with overall trend, silver ready declined by Rs 150 to Rs 40,200 per kg and weekly-based delivery slipped below Rs 40,000-mark by losing Rs 130 to Rs 39,985 per kg.

Silver coins continued to be traded at previous level of Rs 64,000 for buying and Rs 65,000 for selling of 100 pieces.