Gold weakens on muted demand, global cues

New Delhi: After yesterday's surge, gold declined by Rs 40 to Rs 29,250 per ten grams at the bullion market today, owing to slackened demand from jewellers and retailers amid weak overseas cues.

Silver also eased by Rs 50 to Rs 37,425 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from muted demand from jewellers and retailers at prevailing levels, a weak trend overseas mainly led to the fall in prices.

Globally, gold fell 0.38 percent to USD 1,226 an ounce and silver shed 0.42 per cent to USD 15.32 an ounce in yesterday's trade in New York.

In the national capital, gold of 99.9 and 99.5 per cent purity softened by Rs 40 each to Rs 29,250 and Rs 29,100 per ten grams respectively. The precious metal had climbed Rs 540 in the previous session largely on a firming global trend and a strong demand from domestic jewellers.

Sovereign, however, pegged at previous level of Rs 23,000 per piece of eight grams in scattered deals.

Tracking gold, silver ready declined by Rs 50 to Rs 37,425 per kg, while weekly-based delivery held steady at Rs 37,510 per kg.

Silver coins too remained unaltered at previous level of Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.