New Delhi: Gold prices today edged lower while silver prices also weakened. Gold prices dropped 50 to 32,100 per 10 gram amid muted demand from domestic jewellers. Weak overseas prices also weighed on domestic gold prices. Silver rates today also slipped by 50 to 38,100 per kg. Gold of 99.9% and 99.5% purity fell by 50 each to 32,100 and 31,950 per 10 gram, respectively. Gold prices had gained 135 on Saturday.

Sovereign gold prices, however, remained unaltered at 24,800 per piece of 8 gram.

Tracking gold prices, silver ready rates eased by 50 to 38,100. Silver coins, however, continued to be traded at previous level of 73,000 for buying and 74,000 for selling of 100 pieces. The rupee today strengthened to around 71.5 a dollar levels. Higher rupee reduces the imported cost of gold.

In global markets, gold prices softened as investors booked some profit after took some profit after the metal rose for four consecutive sessions last week. Spot gold was down 0.1% at $1,219.98 per ounce. US gold futures were down 0.3% at $1,219.6 per ounce.

“After four days of upside, gold is at a normal profit booking level ... 1,225-1,230 is a resistance zone for gold," said Vandana Bharti, assistant vice-president of commodity research, SMC Comtrade Ltd.

Global gold prices were supported by a muted dollar on Federal Reserve’s concerns over the global economy. The possibility that the Fed might hold a neutral outlook beyond 2018, and a slowdown in the global economy amid the ongoing US-China trade spat will keep investors a little more interested in gold’s safe haven appeal, said analysts.

Holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.19% to 759.68 tonnes on Friday. Hedge funds and money managers boosted their net short position in gold by 33,378 contracts to 70,864 contracts, according to US Commodity Futures Trading Commission data. This was the highest net short position in five weeks.

With Agency Inputs