Gold prices fall amid sluggish demand from jewellers; silver prices recover

Gold prices declined by Rs 45 to Rs 27,265 per ten gram at the bullion market on Monday, in a mixed pattern of trading, owing to slackened demand from jewellers at prevailing levels even as the price of the precious metal rises in global markets.

Bullion traders attributed the fall in gold prices to easing demand from jewellers and retailers at current level.

Traders said, however, a better trend overseas as the dollar fell from a five-year high amid signs of rising physical demand, capped the fall in the yellow metal price.

Silver, however, found fresh buying support from industrial users and the metal's prices recovered by Rs 760 to Rs 36,900 per kg.

Gold in Singapore, which normally sets the price trend in the domestic market, climbed up by 0.3 per cent to US $1,199.65 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 45 each to Rs 27,265 and Rs 27,065 per ten gram respectively. The metal prices had risen by Rs 85 on Saturday.

Sovereign, however, remained steady at Rs 23,700 a piece of eight grams, in restricted deals.

On the other hand, silver ready rebounded by Rs 760 to Rs 36,900 per kg but weekly-based delivery shed Rs 15 to Rs 36,925 per kg.

Meanwhile, silver coins ruled steady at Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.