Gold declines to Rs 21,220 on reduced offtake

New Delhi: Gold declined by Rs 50 to Rs 21,220 per 10 grams on Tuesday on reduced offtake at existing high levels, despite firm global cues. Silver, however, surged Rs 50 to Rs 54,250 per kg on demand from industrial units.

Market analysts said reduced offtake at existing high levels and end of marriage season mainly kept gold prices at lower levels.

Investors shifting funds to a strengthening stock market also effected trading sentiments for the yellow metal, they added.

In global markets, while gold rose by 0.3 per cent to USD 1,431.48 an ounce, silver fell by 0.2 per cent to USD 36.04 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 50 each to Rs 21,220 and Rs 21,100 per 10 grams, respectively. However, sovereigns continued to be enquired around previous level of Rs 17,500 per piece of eight grams.

On the other hand, silver ready remained in demand and added another Rs 50 to Rs 54,250 per kg. Silver weekly-based delivery gained Rs 45 to Rs 53.895 per kg.

Silver coins held steady at Rs 58,900 for buying and Rs 59,400 for selling of 100 pieces.