Gold remains weak, sheds Rs 100 on global cues, low demand

Gold prices fell by another Rs 100 to Rs 30,600 per 10 grams at the bullion market today, largely in tandem with a weak global trend amid muted demand from local jewellers.

Silver also cracked below the Rs 41,000-mark by falling Rs 700 to Rs 40,500 per kg on reduced offtake by industrial units and coin makers.

Traders said a weak trend overseas, as market's focus turned to a two-day US Federal Reserve meeting that kicks off later in the day, kept pressure on the precious metal here.

Besides, the dollar's strength against a basket of major currencies overseas weighed on gold prices, they added.

Globally, gold fell 0.03 per cent to USD 1,306.70 an ounce and silver by 0.35 per cent to USD 17.11 an ounce in Singapore.

In addition, fading demand from local jewellers and retailers at domestic spot market also dampened sentiments.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 100 each to Rs 30,600 and Rs 30,450 per 10 grams, respectively. The precious metal had lost Rs 300 in the previous three sessions.

Sovereign, however, remained unaltered at Rs 24,700 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 700 to Rs 40,500 per kg, while weekly-based delivery by Rs 770 to Rs 39,790 per kg.

Silver coins, however, remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.