Gold falls on muted demand; silver remains weak

Gold prices fell by Rs 125 to Rs 31,050 per ten grams at the bullion market today owing to slackened demand from jewellers at domestic spot market even as the metal strengthened overseas.

Silver too remained under selling pressure and shed Rs 100 to Rs 45,200 per kg.

Traders said easing demand from jewellers and retailers at domestic spot market led to decline in gold prices.

However, a firm trend overseas capped the fall.

Globally, gold rose 0.14 per cent to USD 1,329.30 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 125 each to Rs 31,050 and Rs 30,900 per ten grams respectively. It had edged up by Rs 25 in yesterday's trade.

Sovereign, however, remained steady at Rs 24,400 per piece of eight grams.

On the other hand, silver ready declined by Rs 100 to Rs 45,200 per kg, while weekly-based delivery recovered by Rs 105 to Rs 45,445 per kg on speculative buying.

Silver coins, however, remained unaltered at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.