Gold slides on lacklustre demand

Gold prices drifted lower by Rs 50 to Rs 31,450 per 10 grams at the bullion market today owing to slackened demand from local jewellers despite a firm trend in the overseas markets.

However, silver advanced by Rs 70 to Rs 39,600 per kg due to increased offtake by industrial units and coin makers.

Marketmen said, gold dropped due to a subdued demand from local jewellers and retailers but a firm trend overseas as the dollar remained pressured amid fears of a global trade war following US President Donald Trump's decision to impose tariffs on imports of aluminum and steel, capped the fall.

Globally, gold rose by 0.28 per cent to USD 1,326.30 an ounce and silver by 0.18 per cent to USD 16.54 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity weakened by Rs 50 each to Rs 31,450 and Rs 31,300 per 10 grams, respectively. The precious metal had gained Rs 140 on Saturday's trade.

Sovereign, however, remained flat at Rs 24,800 per piece of eight grams.

On the other hand, silver ready strengthened by Rs 70 to Rs 39,600 per kg and weekly-based delivery by Rs 180 to Rs 38,515 per kg.

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