Gold prices turn weak, silver slips below Rs40,000 on sluggish demand
New Delhi: Gold prices fell by Rs50 to Rs31,550 per 10 gram at the bullion market on Wednesday, owing to slackened demand from local jewellers amid a weak trend overseas. Silver prices slumped below the Rs40,000-mark by plunging Rs650 to Rs39,350 per kg due to reduced offtake by industrial units and coin makers.
Bullion traders said a fall in demand from local jewellers and retailers at existing levels, and a bearish trend overseas as investors focused on expectations that US Federal Reserve may hike rates, mainly weighed on gold and silver prices. Higher interest rates make gold a less attractive investment as it pays no interest.
Globally, gold rate fell 1.14% to $1,323.70 an ounce and silver by 0.54% to $16.62 an ounce in New York on Tuesday.
In the national capital, gold of 99.9% and 99.5% purity shed Rs50 each to Rs31,550 and Rs31,400 per 10 gram, respectively. The precious metal had gained Rs350 in last two days. Sovereign however remained unaltered at Rs24,800 per piece of eight gram.
In line with gold, silver ready plunged by Rs650 to Rs39,350 per kg and weekly-based delivery by Rs405 to Rs38,555 per kg. Silver coins however continued to be traded at previous level of Rs74,000 for buying and Rs75,000 for selling of 100 pieces.