Gold breaks 2-day upmove, slides Rs 60 as demand wanes

New Delhi: Gold changed course today as prices came down by Rs 60 to Rs 29,050 per 10 grams, tracking a sluggish trend overseas amid easing demand from local jewellers.

The drop followed two sessions of back to back rise. Silver showed a similar pattern and shed Rs 50 to Rs 38,500 per kg, hit by reduced offtake.

 The lacklustre trend was mostly the outcome of a stronger dollar against major currencies after US economic data topped analysts' expectations, which weaned investors away from the metal.

Globally, gold fell 0.28 per cent to USD 1,237.50 an ounce and silver by 0.49 per cent to USD 16.18 in Singapore. A softening of demand from local jewellers and retailers weighed on prices too, traders said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity weakened by Rs 60 each to Rs 29,050 and Rs 28,900 per 10 grams, respectively. The precious metal had advanced Rs 160 over the last two days. Sovereign, however, remained unchanged at Rs 24,400 per piece of eight grams.

In sync with gold, silver ready prices went lower by Rs 50 to Rs 38,500 per kg while weekly-based delivery held steady at Rs 37,550 per kg for want of support from speculators. Silver coins, however, continued to be traded at the previous level of Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.