Gold prices fall by Rs 120 to Rs 34,080 per 10 gram

New Delhi: Gold prices fell by Rs 120 to Rs 34,080 per 10 gram at the bullion market Friday due to tepid demand from jewellers, according to All India Sarafa Association.

Besides, silver rates dropped by Rs 370 to Rs 40,680 per kg due to reduced offtake by industrial units and coin makers.

Sentiments remained downbeat largely in tandem with a weak trend overseas where gold retreated to a two-week low as upbeat US economic data boosted the dollar, diminishing appeal of the precious metal as a safe-haven, bullion traders said.

Globally, spot gold fell by 0.28 percent to USD 1,310.20 an ounce and silver by 0.22 percent to USD 15.64 an ounce in New York Friday.

Traders attributed the subdued trend in the precious metal to lacklustre demand from local jewellers.

In the national capital, gold of 99.9 percent and 99.5 purity declined by Rs 120 each to Rs 34,080 and Rs 33,910 per 10 gram, respectively. The precious metal had lost Rs 450 Thursday.

Sovereign gold, too, fell by Rs 100 to Rs 26,500 per piece of 8 gram.

Tracking gold, silver ready dropped by Rs 370 to Rs 40,680 per kg and weekly-based delivery by Rs 724 to Rs 39,144 per kg.

Silver coins, too, faced some pressure and fell by Rs 1,000 to Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.