New Delhi: Gold prices today edged lower but silver rates took a bigger hit. Gold prices declined 100 to 32,050 per 10 grams but silver rates today slumped below the 38,000-mark by plunging 700 to 37,450 per kg. Traders attributed the sharp fall in silver prices to weak demand from industrial units and coin makers. Prices of gold of 99.99% and 99.5% purity fell by 100 each to 32,050 and 31,900 per 10 grams respectively.

Sovereign gold prices, however, remained flat at 24,800 per piece of 8 grams. Silver ready slumped by 700 to 37,450 per kg and weekly-based delivery by 453 to 36,662 per kg. Silver coins also dropped by 1,000 to 74,000 for buying and 75,000 for selling of 100 pieces as demand eased post festive season.

The decline in domestic gold prices came despite a rebound in global markets. Marketmen attributed the slide in domestic gold prices to easing demand from local jewellers and retailers at existing levels in but added that a firm trend overseas capped the fall.

In global markets, gold prices edged higher after the precious metal fell to over one-month lows weighed down by a stronger dollar. Spot gold was up 0.2 percent at $1,202.57 per ounce. Gold prices had slumped to their lowest level since October 11 at $1,199.72 earlier in the session.

“It’s been some time that we have seen this level, so we are seeing some buying here," said Ronald Leung, said chief dealer at Lee Cheong Gold Dealers. “However, a stronger dollar has capped the market."

The dollar index, which measures the greenback against a basket of six major currencies, was hovering near a 16-month high of 97.69.

A firmer greenback makes bullion expensive for holders of other currencies as the commodity is priced in dollars.

With Agency Inputs

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