Gold falls on weak global cues, muted demand

New Delhi: Gold prices fell by Rs 30 to Rs 31,870 per 10 gram at the bullion market on Monday, tracking a weak trend overseas amid subdued demand from local jewellers.

Silver, too, slumped by Rs 500 to Rs 39,300 per kg due to reduced offtake by industrial units and coin makers. Traders said, muted demand from local jewellers and weak trend in the global markets, after dollar strengthened as China's central bank eased its domestic policy, reduced appeal for the precious metals as a safe haven, led to the decline in gold prices.

Globally, gold price fell by 0.66 per cent to USD 1,197.50 an ounce and silver by 0.11 per cent to USD 14.48 an ounce in Singapore. In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 30 each to Rs 31,870 and Rs 31,720 per 10 gram, respectively. Sovereign gold, however, remained flat at Rs 24,600 per piece of 8 gram.

Following gold, silver ready tumbled by Rs 500 to Rs 39,300 per kg and weekly-based delivery by Rs 420 to Rs 38,555 per kg. On the other hand, silver coins maintained a steady trend at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.