Gold weakens on sluggish demand; silver firms up

New Delhi: Gold eased by Rs 50 to Rs 26,600 per ten grams at the bullion market today owing to slackened demand from jewellers even as the metal strengthened overseas.

Silver, however, recovered by Rs 100 to Rs 36,800 per kg.

Bullion traders attributed the fall in gold prices to easing demand from jewellers and retailers at current levels. But, a firming trend in the precious metal overseas, capped the losses.

Globally, gold added 1.20 per cent to USD 1,152.70 an ounce in London after minutes of the Federal Reserve?s last meeting hinted that the central bank would not rush to raise US interest rates. Silver was also up by 1.63 per cent to USD 15.92 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity moved down by Rs 50 each to Rs 26,600 and Rs 26,450 per ten grams, respectively. The precious metal lost Rs 200 yesterday.

Sovereign, however, traded flat at Rs 22,400 per piece of eight grams.

However, silver ready ended higher by Rs 100 to Rs 36,800 per kg and weekly-based delivery went up by Rs 290 to Rs 36,910 per kg.

Silver coins, however, continued to be traded at last level of Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.