Gold price falls to Rs 31,350 on weak global cues, muted demand

New Delhi-India (July 11)  Gold prices fell further by Rs 30 to Rs 31,350 per 10 grams at the bullion market largely due to a weak trend overseas amid tepid demand from local jewellers. Silver followed suit and lost another Rs 150 at Rs 40,500 per kg owing to reduced offtake by industrial units and coin makers.

Marketmen said sentiment remained downbeat on the back of subdued global cues as the US dollar strengthened against yuan due to an escalating trade spat between the United States and China. Furthermore, muted demand from local jewellers and retailers at the domestic spot market put pressure on prices.

Globally, gold fell 0.36 per cent to $1,250.50 an ounce and silver by 0.75 per cent to $15.90 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 30 each to Rs 31,350 and Rs 31,200 per 10 grams, respectively. The precious metal had lost Rs 270 yesterday. Sovereign, however, held steady at Rs 24,800 per piece of eight grams in limited deals.

In sync with gold, silver ready drifted lower by Rs 150 to Rs 40,500 per kg and weekly-based delivery by Rs 265 to Rs 39,610 per kg. Silver coins, however, continued to be enquired at the previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

BusinessLine