Gold prices fall on sluggish demand from jewellers, silver prices rise

Gold prices declined by Rs 70 to Rs 26,350 per 10 grams at the bullion market on Monday owing to slackened demand from jewellers even as the yellow metal strengthened overseas.

Bullion merchants said subdued demand from jewellers and retailers at prevailing levels mainly led to the decline in gold prices.

Silver prices rose further by Rs 50 to Rs 36,050 per kg on sustained buying by industrial units.

Globally, gold traded 0.3 per cent higher at US $1,162.30 an ounce and silver gained 0.6 per cent at US $15.74 an ounce in Singapore.

In the national capital, yellow metal of 99.9 per cent purity eased by Rs 70 to Rs 26,350, while 99.5 per cent pure gold lost Rs 20 to Rs 26,200 per 10 grams, respectively.

Sovereign, however, continued to trade at last level of Rs 23,600 per piece of eight grams.

On the other hand, silver ready advanced by Rs 50 to Rs 36,050 per kg and weekly-based delivery by Rs 275 to Rs 35,805 per kg on speculative buying.

Silver coins remained flat at Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.