Gold, silver turn weak on global cues, sluggish demand

Gold prices drifted by Rs 140 to Rs 27,200 per 10 grams at the bullion market today largely in tandem with a weak trend in global market and slackened demand from jewellers and retailers.

Silver also dropped by Rs 300 to Rs 38,400 per kg on poor offtake by industrial units and coin makers.

Bullion traders said sentiment turned bearish after gold traded at a near three-week low in global markets before the release of monthly data on the US employment that will provide clues on the outlook for borrowing costs in the world's largest economy.

Globally, gold was 0.1 per cent lower at $1,183.66 an ounce and silver lost 0.2 per cent to $16.49 an ounce in Singapore.

Subdued demand from jewellers and retailers also dampened the sentiment, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 140 each to Rs 27,200 and Rs 27,050 per 10 gram, respectively.

The precious metal had gained Rs 115 in last two days.

Sovereign, however, continued to be traded at last level of Rs 23,700 per piece of eight gram for want of buying support.

Following gold, silver ready fell by Rs 300 to Rs 38,400 per kg and weekly-based delivery by Rs 515 to Rs 37,930 per kg.

Silver coins also plummeted by Rs 1,000 to Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.