Gold drops on sluggish demand, weak global cues

Silver too shed Rs 115 to Rs 39,915 per kg on low offtake from industrial units and coin makers.

A weak overseas trend when metals' prices slid to seven-month lows as the dollar rose to a two-week peak, buoyed by safe-haven purchases in the ongoing US-China trade war, influenced the sentiment here.

Demand for the precious metals also waned on expectations of higher US interest rates.

Globally, gold fell 0.47 per cent to USD 1,241 an ounce and silver by 0.88 per cent to USD 15.79 an ounce in New York yesterday.

Moreover, erosion in demand from local jewellers and retailers at domestic spot market fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 25 each to Rs 31,090 and Rs 30,940 per ten grams, respectively. It had lost Rs 535 in last four days.

Sovereign however held steady at Rs 24,800 per piece of eight gram.

In sync with gold, silver ready traded lower by Rs 115 to Rs 39,915 per kg and weekly-based delivery by Rs 220 to Rs 39,045 per kg.

Silver coins however held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.