Gold weakens on lacklustre demand

Silver also declined by Rs 75 to Rs 38,175 per kg due to reduced offtake by industrial units and coin makers.

Market analysts said easing demand from local jewellers and retailers at the domestic spot market, weighed on gold prices but a better trend overseas capped the fall.

Globally, gold was trading higher by 0.13 per cent to USD 1,262.90 an ounce in Singapore as the dollar held steady on expectations of a US tax overhaul.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 10 each to Rs 29,690 and Rs 29,540 per 10 gram, respectively. The precious metal had surged Rs 175 yesterday.

Sovereign however remained unaltered at Rs 24,500 per piece of eight gram.

On the other hand, silver ready drifted lower by Rs 75 to Rs 38,175 per kg and weekly-based delivery by Rs 80 to Rs 37,420 per kg.

Silver coins also plunged by Rs 1,000 to Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.