Gold snaps 2-day advance on subdued demand, global cues

Snapping a two-day rising run, gold prices on Tuesday fell by Rs 70 to Rs 26,500 per ten grams at the bullion market in the national capital owing to slackened demand at prevailing levels amid a weak global trend.

Silver, however, ended steady at Rs 36,000 per kg on scattered demand from consuming industrial units.      

Traders said easing demand at existing levels and a weak trend overseas, as a stronger dollar curbed the appeal of the metal, mainly pulled down the precious metal prices.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 per cent to $1,167.14 an ounce and silver by 0.4 per cent to $15.68 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity declined by Rs 70 each to Rs 26,500 and Rs 26,350 per 10 grams respectively.

It had gained Rs 70 in the last two days.

Sovereign, however, traded at the last level of Rs 23,300 per piece of eight gram in restricted buying.      

On the other hand, silver ready held steady at Rs 36,000 per kg, while weekly-based delivery rose Rs 50 to Rs 36,000 per kg.

Silver coins, however, continued to be traded at last level of Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.