Gold and silver prices decline on muted demand

New Delhi: Gold prices Thursday declined by Rs 405 to Rs 32,385 per 10 gram in the national capital on reduced buying by local jewellers, according to the All India Sarafa Association.

Silver too slumped by Rs 104 to Rs 38,246 per kg on subdued offtake by industrial units and coin makers.

Traders said gold fell due to decline in domestic demand. Besides, signs of positive global economic outlook reduced gold's appeal as safe-haven, thus weighing on the sentiment.

Spot gold was trading at USD 1,276.10 an ounce, while silver stood steady at USD 15.10 an ounce in New York.

On Wednesday, Delhi bullion market was closed on account of Mahavir Jayanti.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity reduced by Rs 405 and Rs 395 to Rs 32,385 and Rs 32,225 per 10 gram, respectively.

Similarly sovereign gold fell by Rs 100 at Rs 26,300 per eight gram.

Silver ready dropped Rs 104 to Rs 38,246 per kg, while weekly-based delivery fell by Rs 187 to Rs 37,135 per kg.

Silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.