Gold slips Rs 100 on global cues, low demand; silver rebounds

New Delhi: Falling for the second straight day, gold prices declined by Rs 100 to Rs 31,350 per 10 grams at the bullion market on Saturday on a sluggish overseas trend and softness in local demand.

However, silver bounced back by Rs 275 to Rs 37,775 per kg due to increased offtake from industrial units and coin makers. Marketmen said apart from a weak trend overseas, easing demand from local jewellers and retailers at the domestic spot market weighed on gold prices.

Globally, gold prices fell 0.28 per cent to USD 1,196.20 an ounce in New York in Friday's trade following upbeat US jobs data that strengthened the dollar and eroded demand for the precious metals as a safe haven.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted further lower by Rs 100 to Rs 31,350 and Rs 31,200 per 10 grams, respectively.

The precious metal had shed Rs 60 on Friday.

Sovereign, however, remained steady at Rs 24,500 per piece of eight grams.

On the other hand, silver ready rebounded by Rs 275 to Rs 37,775 per kg and weekly-based delivery gained Rs 140 to Rs 37,165 per kg.

Silver coins, however, continued to be traded at the previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.