Gold breaks 3-day rise, down Rs 100 on global cues, low demand

Gold prices slipped by Rs 100 to Rs 30,525 per 10 grams at the bullion market today, halting its three-session gains, due to weak global cues amid muted demand from local jewellers at prevailing levels.

Silver fell further by Rs 75 to Rs 40,650 per kg due to reduced offtake by industrial units and coin makers.

The yellow metal lost strength as dollar strengthened after upbeat US economic data bolstered the prospects of interest rate increases next month and beyond. This eroded demand for the precious metals as a safe haven.

Besides, fading demand from local jewellers and retailers at existing levels dampened sentiments, marketmen said.

Globally, gold declined 0.07 per cent to USD 1,276.70 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity weakened by Rs 100 each to Rs 30,525 and Rs 30,375 per ten grams, respectively. The precious metal had gained Rs 175 in the previous three days.
Sovereign, however, remained steady at Rs 24,700 per piece of eight grams.

Silver ready drifted lower by Rs 75 to Rs 40,650 per kg and weekly-based delivery by Rs 135 to Rs 30,650 per kg.

Silver coins continued to be traded at the previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

Report courtesy ET Markets