Gold loses lustre on muted demand, silver slides more

Gold prices dropped a tad -- by Rs 30 -- to close at Rs 30,800 per 10 grams today, dampened by demand slackness even as the metal traded strong overseas.

Silver eased by a bigger margin Rs 100 to Rs 41,200 per kg as industrial units and coin makers held themselves back.

Domestic jewellers and retailers were not too forthcoming in their orders at the prevailing level, but a firm trend overseas checked the decline in gold prices.

Globally, gold rose 0.18 per cent to USD 1,295.40 an ounce and silver by 0.17 per cent to USD 17.26 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 30 each to Rs 30,800 and Rs 30,650 per 10 grams, respectively. It had advanced Rs 80 yesterday.

Sovereign, however, was steady at Rs 24,700 per piece of eight grams.

While silver ready fell by Rs 100 to Rs 41,200 per kg, weekly-based delivery edged up by Rs 55 to Rs 40,385.

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