Gold prices turn lower on shrinking demand

New Delhi: Gold was on Saturday weighed down by slackening demand as prices dropped Rs 50 to Rs 30,800 per 10 grams even as the metal strengthened overseas.

Demand softness also led to silver tumbling by Rs 200 to Rs 40,500 per kg as industrial units and coin makers kept to the sidelines.

The losses, according to traders, would have been higher but for a firm trend overseas that arrested the slide. Easing demand from jewellers and retailers prevailed chiefly in the domestic spot market.

Globally, gold rose 0.50 per cent to USD 1,297.10 an ounce and silver 0.27 per cent to USD 16.98 an ounce in New York yesterday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 50 each to Rs 30,800 and Rs 30,650 per 10 grams, respectively. It had climbed Rs 350 in yesterday’s trade.

Sovereign, however, remained unchanged at Rs 24,700 per piece of eight grams in limited deals.

In sync with the broader trend, silver ready moved lower by Rs 200 to Rs 40,500 per kg and weekly-based delivery by Rs 205 to Rs 39,725.

Silver coins, however, held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.