Gold weakens on muted demand; silver recovers

New Delhi: Gold prices drifted lower by Rs 90 to Rs 32,000 per 10 grams at the bullion market on Thursday owing to weak demand from jewellers even as the metal strengthened overseas.

On the other hand, silver reclaimed the Rs 41,000 mark by rising Rs 350 per kg due to increased offtake by industrial units and coin makers.

Traders said easing demand from local jewellers as well as retailers at the domestic spot market led to decline in the prices, but a firm trend overseas capped the fall.

Globally, gold rose 0.29 percent to USD 1,304.70 an ounce and silver 0.42 percent to USD 16.56 an ounce in Singapore.

In the national capital, gold of 99.9 percent and 99.5 percent purity declined by Rs 90 each to Rs 32,000 and Rs 31,850 per 10 grams respectively. It had gained Rs 230 in yesterday's trade.

Sovereign gold, however, remained flat at Rs 24,800 per piece of eight grams.

On the other hand, silver ready rebounded by Rs 350 to Rs 41,050 per kg and weekly-based delivery by Rs 340 to Rs 40,125 per kg.

Silver coins continued to be traded at last level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.