Gold halts 3-day rise, sheds Rs 50 on weak demand

After rising for 3 days, gold prices weakened by Rs 50 to Rs 30,550 per 10 grams at the bullion market today on weak global cues and easing demand by local jewellers.

Silver, on the other hand, recaptured the Rs 42,000-mark due to increased offtake by industrial units and coin makers.

Traders said that apart from weak trend in overseas markets, fall in demand from local jewellers as well as retailers at prevailing higher levels led to decline in gold prices.

Globally, gold fell 0.19 per cent to USD 1,336.90 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slipped by Rs 50 each to Rs 30,550 and Rs 30,400 per 10 grams respectively. The precious metal had gained Rs 550 in the previous three sessions.

Sovereign, however, remained flat at Rs 24,600 per piece of eight grams.

Silver ready advanced by Rs 300 to Rs 42,000 per kg, while weekly-based delivery rallied by Rs 940 to Rs 41,500 per kg.

Silver coins continued to be traded at the previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.