Gold price and silver price slide on global woes, muted demand

Mumbai-India (Aug 29)  Gold prices stayed soft as it fell by Rs. 50 to Rs. 31,200 per 10 grams today, reflecting a weak trend overseas amid muted demand from jewellers at the domestic spot market.

Silver also dropped Rs. 300 to Rs. 44,400 per kg on reduced offtake by industrial units and coin makers.

Traders said the sentiment was dampened following a weak trend overseas.

In the overseas market, gold dropped for the seventh straight day, heading for the longest run of decline since May after Federal Reserve chief Janet Yellen hinted at a US interest rate hike by the end of the year.

This strengthened the dollar and eroded demand for the precious metal as a safe haven.

Globally, gold lost 0.4 per cent to $1,316.09 an ounce, the lowest since July 27 in Singapore.

Besides, sluggish demand from jewellers and retailers at the domestic spot market weighed, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined Rs. 50 each to Rs. 31,200 and Rs. 31,050 per 10 grams, respectively. The precious metal had gained Rs. 100 in Saturday’s trade.

Sovereign, however, remained unchanged at Rs. 24,300 per piece of eight grams in limited deals.

Source: BusinessLine