Mumbai: Gold drifted lower by Rs120 per 10 grams at the bullion market in Mumbai Friday following subdued demand from stockists and investors.

Silver also declined by Rs85 per kg on slow offtake by industrial units. Standard gold (99.5 purity) dropped by Rs120 to close at Rs29,675 per 10 grams from Thursday’s level of Rs29,795.

Pure gold (99.9 purity) also dipped by a similar margin to finish at Rs29,825 per 10 grams compared Rs29,945 Thursday. Silver (.999 fineness) fell by Rs85 per kg to end at Rs39,855 as compared to Rs39,940 previously.

Globally, gold was on track for its first weekly rise in five weeks ahead of US inflation data later in the day that could give clues on the pace of US interest rate rises. Spot gold was flat at $1,293.81 an ounce at early trade after touching a high of $1,298.32. Silver was up 0.4% at $17.24 an ounce after hitting a three-week high of $17.32.