New Delhi: Weak global prices and muted demand from domestic jewellers sent gold prices sharply lower today. Gold prices declined by 270 to 34,180 per 10 gram at the bullion market, Press Trust of India reported, citing All India Sarafa Association. Silver rates, however, gained 120 today to 41,500 per kg on increased offtake by industrial units and coin makers. Gold prices have been volatile this week with prices on Monday rising 340 and then giving up some gains before falling sharply falling today.

In Delhi, gold of 99.9% and 99.5% purities fell by 270 each to 34,180 and 34,030 per 10 gram, respectively. However, sovereign gold held steady at 26,100 per piece of eight gram. Silver ready rose by 120 to 41,500 per kg, while weekly-based delivery gained 77 to 40,400 per kg. On other hand, silver coins held flat at 80,000 for buying and 81,000 for selling of 100 pieces.

In global markets, gold prices remained near one-week low weighed by a stronger dollar but uncertainties around the China-US trade spat and concerns about slowing global growth supported the metal above the key $1,300 level. Spot gold was near $1,306 while US gold futures were down 0.3% at $1,310.60.

In global markets, gold rates rose to its highest level since late April last week after the US Federal Reserve kept interest rates steady but has lost ground ever since as the dollar gained.

The dollar index, which tracks the greenback against major currencies, was on course for a sixth straight session of gains and trading close to its two-week high, making bullion more expensive for holders of other currencies. (With Agency Inputs)