Gold prices slip on weak global cues, silver weaken

Gold prices today edged lower, tracking weak overseas trend and muted demand from local jewellers. Tracking gold, silver rates also weakened on reduced offtake by industrial units and coin makers. Gold rates fell by ₹55 to ₹34,225 per 10 gram at the bullion market, Press Trust of India reported, citing All India Sarafa Association, while silver rates weakened by ₹150 to ₹41,100 per kg.

Sovereign gold, however, remained flat at ₹26,100 per piece of eight gram. Silver ready declined by ₹150 to ₹41,100 per kg and weekly-based delivery by ₹118 to ₹39,987 per kg. Silver coins however continued to be traded at last level of ₹80,000 for buying and ₹81,000 for selling of 100 pieces.

In global markets, gold prices fell as concerns mounted over a slowdown in global growth. Investors also looked ahead to US-China trade talks, scheduled to start later this week. Spot gold fell 0.6% to $1,306.51 per ounce. US gold futures declined 0.6% to $1,310.60 per ounce.

"Gold has managed to be above $1,300 level, which is a fairly solid and decent support level," Reuters quoted Mitsubishi analyst Jonathan Butler as saying.

The dollar index was at a near six-week high, making the greenback-denominated gold more expensive for holders of other currencies.

The dollar has risen despite the Federal Reserve pausing its multi-year rate hike cycle and dovish comments from several Fed officials, which pushed gold to a nine-month high at $1,326.30 in late January.

Meanwhile, holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, saw outflows for five straight sessions last week.

(With Agency Inputs)