Gold down by Rs 200 on weak global cues

New Delhi: Gold prices drifted lower by Rs 200 to Rs 29,050 per 10 gm at the bullion market here on December 5, tracking a weak trend overseas amid tepid demand in the domestic spot market on prevailing cash crunch following demonetisation of high value notes.

Silver strengthened however by Rs 200 to Rs 41,200 per kg on increased offtake by industrial units and coin makers.

Traders said that apart from a weak trend overseas, fall in demand from jewellers and retailers in view of scarcity of funds weighed on gold prices.

Government on November 8 had announced the demonetisation of 500 and 1,000 rupee notes in a bid to flush out black money, leading to cash crunch in the financial system.

Globally, gold fell by 0.64 per cent to USD 1,169.60 an ounce in Singapore. In the national capital, 99.9 per cent and 99.5 per cent purity gold fell by Rs 200 each to Rs 29,050 and Rs 28,900 per 10 grams respectively.

The precious metal had gained Rs 250 in Saturday's trade. Sovereign, however, held steady at Rs 24,400 per piece of eight grams in scattered deals.

On the other hand, silver ready advanced by Rs 200 to Rs 41,200 per kg and weekly-based delivery by Rs 40 to Rs 40,365 per kg. Whereas, silver coins remained steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.