Gold sheds Rs 100 on weak global cues, sluggish demand

Mumbai-India (Aug 18)  Gold prices fell by Rs 100 to Rs 28,600 per 10 grams in the national capital today after it declined in global markets on easing tensions over Ukraine amid subdued demand from jewellers and retailers.

Silver followed suit and lost Rs 645 at Rs 42,880 per kg on reduced offtake by industrial units and coin makers.

 Traders attributed fall in gold prices to a weakening trend overseas amid signs of tension easing over Ukraine.

 Besides, sluggish demand from jewellers and retailers at prevailing levels and diversion of funds towards soaring equity markets, too, weighed on precious metal prices, they said.

 Gold in London, which normally determines the price trend on the domestic front, fell 0.3 per cent to $1,300.98 an ounce.

 In Delhi, gold of 99.9 and 99.5 per cent purity declined by Rs 100 each to Rs 28,600 and Rs 28,400 per 10 grams, respectively. Sovereigns also fell by a similar margin to trade at Rs 24,700 per piece of eight grams.

 In a similar fashion, silver ready dropped by Rs 645 to Rs 42,880 per kg and weekly-based delivery by Rs 680 to Rs 42,580 per kg.

Source: BusinessStandard