Gold turns weak on fall in demand, price falls by Rs 320 to Rs 27,230 in Delhi

New Delhi-India (Sept 28)  After yesterday's sharp rise, gold prices fell back by Rs 320 to Rs 27,230 per ten gram in the national capital today as demand eased at prevailing higher levels coupled with a weak global trend.

Silver also fell by Rs 365 to Rs 39,535 per kg on reduced offtake by industrial units and coin makers.

Traders said fall in demand at existing higher level and a weak global trend where gold fell after a report showed that the US economy expanded last quarter at the fastest rate since 2011, crimping demand for the metal as an alternative investment, mainly kept pressure on precious metals prices.

Gold in New York, which normally sets price trend on the domestic front, fell 0.5 per cent to USD 1,215.40 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 320 each to Rs 27,230 and Rs 27,030 per ten gram respectively. It had recorded the second biggest gain this year by surging Rs 590 in yesterday's trade.

Sovereign, however, maintained a steady trend at Rs 24,200 per piece of eight gram in limited deals.

Silver ready traded lower by Rs 365 to Rs 39,535 per kg and weekly-based delivery by Rs 370 to Rs 39,170 per kg. The white metal had gained Rs 550 in the previous session.

Meanwhile, silver coins continued to be traded at last level of Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.

Souce:  FinancialExpress