Gold falls Rs 100 on muted demand; silver firms up

New Delhi: Gold prices dropped Rs 100 to Rs 35,780 per 10 gram in the bullion market here Wednesday due to lacklustre demand from jewellers even as the precious metal remained flat overseas, according to the All India Sarafa Association.

Silver, however, gained Rs 70 to Rs 42,120 per kg on increased offtake by industrial units and coin makers.

The decline in demand from local jewellers at the domestic spot market led to the dip in gold prices though the yellow metal remained flat in overseas market, traders said.

Globally, gold was trading almost flat at USD 1,430.70 an ounce in New York as investors awaited the outcome of US Federal Reserve's meeting on Wednesday.

The US Fed is expected to cut its benchmark interest rate for the first time in a decade. Meanwhile, silver was quoting lower at USD 16.54 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell Rs 100 each to Rs 35,780 per 10 gram and Rs 35,610 per 10 gram, respectively. Sovereign gold held steady at Rs 27,500 per eight gram.

Silver ready gained Rs 70 to Rs 42,120 per kg, while weekly-based delivery rose Rs 195 to Rs 41,434 per kg. Price of silver coins held flat at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.