Gold declines by Rs 125, silver Rs 400 on weak demand

Last Updated: Thu, Oct 04, 2012 10:28 hrs

Gold prices lost Rs 125 to Rs 31,575 per 10 grams in the national capital today on weak demand at prevailing higher levels amid strengthening rupee.

Silver prices followed suit and declined Rs 400 at Rs 60,600 per kg on reduced offtake by industrial units and coin makers.

Traders said subdued demand at prevailing higher levels as well as start of 'Shradhs', which are considered inauspicious in Hindu mythology for purchasing new things, mainly kept pressure on gold prices.

Stronger rupee against dollar, which makes imports cheaper, too influenced the trading sentiment. Investors were also seen diverting funds from bullion to rising equity markets for quick gains, they said.

The gold of 99.9 and 99.5 per cent purity fell by Rs 125 each to Rs 31,575 and Rs 31,375 per 10 grams, respectively. It had shed Rs 50 yesterday.

Sovereign found scattered buying and gained Rs 50 to Rs 25,450 per piece of eight grams.

Silver ready fell by Rs 400 to Rs 60,600 per kg and weekly-based delivery by Rs 10 to Rs 62,525 per kg.

Silver coins also dropped by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

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