Gold, silver price falls on sluggish demand, weak global cues

Snapping a three-day rising trend, gold prices on Tuesday declined by Rs 180 to Rs 27,200 per ten grams at the bullion market owing to slackened demand at prevailing higher levels amid a weak global trend.

Silver also dropped by Rs 1,150 to Rs 37,050 per kg on poor offtake by industrial units and coin makers.

Traders said besides easing demand at current levels a weak global trend - on concern that the Federal Reserve is moving closer to raising US interest rates - reduced demand for the precious metal as an alternative investment, pulling down gold and silver prices.

Gold in New York, which normally sets price trend on the domestic front, fell 1.2 per cent to $1,207.70 an ounce silver by 2.9 per cent to $16.56 an ounce in Monday's trade.

In Delhi, gold of 99.9 and 99.5 per cent purity tumbled by Rs 180 each to Rs 27,200 and Rs 27,000 per ten gram respectively. It had gained Rs 80 in the previous three days.

Sovereign declined by Rs 100 to Rs 23,700 per piece of eight gram.

Silver ready plunged by Rs 1,150 to Rs 37,050 per kg and weekly-based delivery by Rs 1,110 to Rs 37,390 per kg.

Silver coins also slumped by Rs 2,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.