Gold price falls to Rs. 29,100 on weak demand

Mumbai-India (May 20)  Gold prices softened by Rs. 100 to Rs. 29,100 per 10 grams due to weak local demand, even as the metal strengthened overseas.

In contrast, silver climbed further by Rs. 50 to Rs. 39,200 per kg ,driven by industrial units and coin makers.

A decline in demand from local jewellers and retailers pushed down gold prices, but a firm trend overseas restricted the losses.

Globally, gold rose 0.71 per cent to $1,255.60 an ounce and silver by 1.66 per cent to $16.83 an ounce in New York yesterday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped by Rs. 100 each to Rs. 29,100 and Rs. 28,950 per 10 grams, respectively. It had gained Rs. 600 in the past three days.

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

On the other hand, silver ready advanced by Rs. 50 to Rs. 39,200 per kg and weekly-based delivery Rs. 135 to Rs. 39,135 per kg.

Silver coins, however, were on hold at Rs. 71,000 for buying and Rs. 72,000 for selling of 100 pieces

Source: BusinessLine