Gold prices fall on subdued demand, global cues

Gold prices fell by Rs. 10 to Rs. 28,650 per 10 grams in the national capital on Friday on decline in demand for the metal at prevailing levels amid a weak global trend.

However, silver continued its rising trend for the third straight day and rose by Rs. 300 to Rs. 45,300 per kg on sustained buying by coin makers.

Traders said fall in demand at prevailing levels and a weak trend overseas kept pressure on gold prices.

Gold in Singapore, which normally sets price trend on the domestic front, traded at $1,316.40 an ounce from $1,316.58 on Thursday.

In Delhi, gold of 99.9 and 99.5 per cent purity shed Rs. 10 each to Rs. 28,650 and Rs. 28,450 per 10 grams, respectively.

It had lost Rs 50 on Thursday.

Sovereign, however, held steady at Rs. 24,900 per piece of eight grams in limited deals.

On the other hand, silver ready gained Rs. 300 to Rs. 45,300 per kg and weekly-based delivery was up by Rs. 120 to Rs. 44,650 per kg.

The white metal had gained Rs. 300 in last two days.

Silver coins continued to be traded at previous level of Rs. 79,000 for buying and Rs. 80,000 for selling of 100 pieces.