Gold price falls to Rs. 28,600 on weak demand

New Delhi-India (May 16)  Gold prices softened by Rs. 30 to Rs. 28,600 per 10 grams at the bullion market here today due to fall in demand from local jewellers even as the metal strengthened overseas, helping cap a further decline.

Silver, however, gained Rs. 400 to Rs. 38,900 per kg due to increased offtake by industrial units and coin makers.

Marketmen said easing demand from local jewellers and retailers at the existing levels weighed on gold prices but a firm trend overseas capped the fall.

Globally, gold rose 0.32 per cent to $1,234.30 an ounce. Silver too traded 0.60 per cent higher at $16.70 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs. 30 each to Rs. 28,600 and Rs. 28,450 per 10 grams respectively. It had gained Rs. 230 in the past three sessions.

Sovereign also traded lower by Rs. 100 to Rs. 24,300 per piece of eight grams.

On the other hand, silver ready recovered by Rs. 400 to Rs. 38,900 per kg and weekly-based delivery by Rs. 270 to Rs. 38,720 per kg.

Silver coins were unaltered at Rs. 69,000 for buying and Rs. 70,000 for selling of 100 pieces.

Source: BusinessLine