Gold prices take a knock from muted demand, silver follows

New Delhi-India (Aug 2)   Gold prices lost for the second day on Wednesday, this time by Rs80 to Rs29,450 per 10 grams, in step with global sluggishness. Reduced offtake by jewellers due to fading domestic demand also played out.

Silver prices came down by Rs320 to Rs39,180 per kg caused by poor demand from industrial units and coin makers. The subdued buying activity largely reflected the bearish trend overseas, sparked by renewed strength in the dollar, which ate into safe haven appeal of the precious metals.

Globally, gold fell 0.16% to $1,266.20 an ounce and silver 0.36% to $16.63 in Singapore.

In Delhi, gold of 99.9% and 99.5% purity moved further down by Rs80 each to Rs29,450 and Rs29,300 per 10 grams, respectively.

The precious metal had lost Rs120 on Tuesday. Sovereign, however, stayed at the previous level of Rs 24,500 per piece of eight grams.

In line with gold, silver ready declined by Rs 320 to Rs 39,180 per kg and weekly-based delivery by Rs 310 to Rs 38,275. Silver coins, however, went flat at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

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