Gold price falls by Rs 50 on sluggish demand

Gold prices fell by Rs 50 to Rs 27,250 per ten gram at the bullion market in the national capital on Thursday owing to slackened demand from jewellers even as gold rose in global market.

However, silver ready held steady at Rs 36,700 per kg.

Traders said fall in demand from jewellers and retailers at prevailing levels mainly led to the fall in gold prices but a better trend overseas after the US Fed kept its monetary policy unchanged, limited the losses.

Gold in Singapore advanced as much as 1 per cent to $1,202.08 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity declined by Rs 50 each to Rs 27,250 and Rs 27,050 per ten gram respectively.

It had gained Rs 100 on Wednesday. Sovereign, however, remained steady at Rs 23,700 per piece of eight gram in limited deals.

On the other hand, silver ready ruled steady at Rs 36,700 per kg but weekly-based delivery inched up by Rs 25 to Rs 36,800 per kg on speculators' buying.

Meanwhile, silver coins continued to be traded at last level of Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.