Gold weakens on muted demand, silver recovers on fresh buying

Tuesday, Mar 1, 2016,15:40 IST By Metrovaartha A A A

New Delhi | Gold prices retreated by Rs 5 to Rs 29,400 per 10 gram at the bullion market today owing to slackening demand from jewellers at the domestic spot market even as the precious metal strengthened overseas.

Silver staged a comeback by rising Rs 300 to Rs 36,800 per kg following buying support from industrial units.

Traders said easing demand from jewellers and retailers at prevailing levels mainly led to decline in gold prices.

They said, however, a firming trend overseas where gold rallied as data showed Chinese manufacturing contracted for the record seventh month boosting demand for the safe haven, capped the fall.

Globally, gold rose 0.8 per cent to USD 1,248.67 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 5 each at Rs 29,400 and Rs 29,250 per 10 grams, respectively. It had gained Rs 155 yesterday.    Sovereign, however, continued to be traded at the previous level of Rs 23,000 per eight grams in limited deals.    On the other hand, silver ready recovered by Rs 300 to Rs 36,800 per kg and weekly-based delivery by Rs 180 to Rs 36,250 per kg.

Meanwhile, silver coins held steady at Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.