Gold weakens on global cues, silver recovers

New Delhi: Gold slipped by Rs 40 to Rs 25,800 per ten grams at the bullion market on Thursday, tracking a weak trend overseas amid sluggish demand from jewellers at prevailing levels.

However, silver recovered by Rs 100 to 34,300 per kg on increased offtake by industrial units and coin makers.

Bullion traders said overnight losses in gold in global market ahead of next week?s meeting of the Federal Reserve which will probably hike interest rates for the first time since 2006, damping the allure of the metal which does not pay interest, mainly kept pressure on the precious metal here.

Besides, fall in demand from jewellers at the domestic physical markets too influenced gold prices, they said.

Globally, gold fell 0.20 per cent to USD 1,072.50 an ounce in New York yesterday, while it was trading 0.12 per cent higher at USD 1,073.80 an ounce in London today.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 40 each to Rs 25,800 and Rs 25,650 per ten grams, respectively. It had gained Rs 65 yesterday.

Sovereign, however, continued to be traded at previous level of Rs 22,200 per piece of eight grams.

On the other hand, silver ready recovered by Rs 100 to Rs 34,300 per kg, while silver weekly-based delivery shed Rs 10 at Rs 34,350 per kg.