Gold weak on global cues, low demand; silver remains up

Weak global bullion market and tepid domestic demand continued pressure on gold prices. Gold closed at Rs 26,600 per 10 grams at the bullion market on Monday, but silver rallied to Rs 35,760 per kg.

New Delhi: Tracking a weak overseas trend and slackened demand from jewellers at prevailing levels, gold prices fell by Rs 210 to Rs 26,600 per 10 grams at the bullion market on Monday.

However, silver continued to rally and surged by Rs 150 to Rs 35,760 per kg on the back of increased offtake by coin makers ahead of Diwali festival.
Bullion merchants said weakness in gold overseas after Friday's rally and slowdown in buying activity by jewellers following fall in demand at prevailing levels, mainly dragged down gold prices.

Globally, gold was trading 0.17 per cent down at USD 1,137.50 an ounce in Singapore but silver rose 0.43 per cent to USD 15.33 an ounce. The precious metal had recorded this year's biggest one-day rise of Rs 660 on Saturday.

An appreciating rupee against the dollar that made imports cheaper also dampened sentiments, they said. At the forex market, rupee was trading 30 paise higher at 65.21 (intra-day) against the American currency.

In the national capital, gold of 99.9 and 99.5 per cent purity slumped by Rs 210 each to Rs 26,600 and Rs 26,450 per 10 grams, respectively. Sovereign, however strengthened by Rs 100 to Rs 22,400 per piece of eight grams. In contrast, silver ready advanced by Rs 150 to Rs 35,950 per kg and weekly-based delivery zoomed Rs 1,185 to Rs 35,760 per kg on speculative activity.

Silver coins also strengthened by Rs 1,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.