Gold falls Rs 60 on weak global cues, muted demand

Gold prices fell by Rs 60 to Rs 34,530 per 10 grams at the bullion market on Tuesday backed by weak trend overseas amid easing demand from local jewellers at prevailing levels, according to All India Sarafa Association.

Silver, too, dropped by Rs 195 to Rs 41,405 per kg owing to reduced offtake by industrial units, while its coins strengthened on increased demand.

Traders said apart from a weak trend overseas, decline in demand from local jewellers and retailers at existing levels in domestic spot market, mainly weighed on the gold and silver prices.

Globally, spot gold fell 0.14 per cent to USD 1,326.30 an ounce and spot silver by 0.16 per cent to USD 15.93 an ounce in New York.

In the national capital, gold of 99.9 per cent fell by Rs 60 to Rs 34,530 per 10 grams, while gold of 99.5 per cent shed Rs 40 to Rs 34,400 per 10 gram.

Sovereign gold, however, remained unaltered at Rs 26,600 per piece of eight grams in limited deals.