Gold declines on weak global cues, low demand

New Delhi: Taking weak cues from the global market and fall in demand from local jewellers, gold prices dipped below the Rs 32,000-mark by plunging Rs 400 to Rs 31,750 per 10 grams at the bullion market during the week.

Silver also weakened on poor offtake by industrial units and coin makers.

Traders said sentiment turned bearish in sync with the weak trend overseas as prospects of higher US interest rates are negative for dollar-priced gold.

Globally, gold ended the week at USD 1,222.74 per ounce and silver at USD 14.27 an ounce in New York.

In addition, a considerable fall in demand from jewellers and retailers at the domestic spot market put pressure on the prices, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity started the week on a subdued note and closed at Rs 31,750 and Rs 31,600 per 10 grams respectively, showing a fall of Rs 400 each.

Sovereign, after remaining steady at Rs 24,800 per piece of 8 grams for the better part of the week on some support, came under pressure on Saturday and ended with a fall of Rs 100 at Rs 24,700.

In line with overall trends, silver ready traded in the negative zone through the week and ended lower by Rs 850 to Rs 37,300 per kg and weekly-based delivery dropped by Rs 923 Rs 36,100 per kg.

Silver coins, on the other hand, remained unchanged at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.