Gold, silver prices drop on subdued demand, global cues

Gold prices declined by Rs 115 to Rs 26,575 per 10 grams at the bullion market today due to sluggish demand from jewellers amid a weakening trend overseas.

Silver prices fell sharply by Rs 800 to Rs 37,200 per kg on reduced offtake by industrial units and coin makers.

Traders said apart from low demand from jewellers and retailers, a weakening global trend mainly kept precious metals under pressure.

Gold in Singapore, which normally sets price trend on the domestic front, traded $1,185.49 an ounce lower from yesterday's $1,186.07 and silver was down by 0.2 per cent to USD 16.69 an ounce.

In the national capital, gold of 99.9% and 99.5% purity fell by Rs 115 each to Rs 26,575 and Rs 26,425 per 10 grams, respectively.

Sovereign, however, remained steady at Rs 23,700 per piece of eight grams.

In line with overall trends, silver ready dropped by Rs 800 to Rs 37,200 per kg and weekly-based delivery fell by Rs 820 to Rs 37,170 per kg.

Silver coins also declined by Rs 1,000 to Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.