Gold loses sheen on subdued global cues, muted demand

Gold prices drifted lower by Rs 110 to Rs 31,180 per 10 grams at the bullion market, tracking a weak trend overseas amid slackened demand from local jewellers.

Silver also fell below the Rs 39,000-mark by falling Rs 150 to Rs 38,950 per kg due to reduced offtake by industrial units and coin makers.

Traders said sentiment turned bearish after gold fell in global markets as the dollar remained firm, with investors expecting the US Federal Reserve to raise interest rates at this week's policy meeting.

Globally, gold fell by 0.33 per cent to USD at 1,309.30 an ounce and silver by 0.61 per cent to USD 16.23 an ounce in Singapore.

Besides, tepid demand from local jewellers and retailers in the domestic spot market due to off-wedding season too fuelled the downtrend.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity lost Rs 110 each to Rs 31,180 and Rs 31,030 per 10 grams, respectively. The precious metal had gained Rs 40 in Saturday's trade.

Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams.

In sync with gold, silver ready fell by Rs 150 to Rs 38,950 per kg and weekly-based delivery by Rs 145 to Rs 38,225 per kg.

Silver coins, however, remained flat at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.