Gold prices fell by Rs. 120 to Rs. 31,500 per ten grams

Snapping a two-day rising trend, gold prices fell by Rs. 120 to Rs. 31,500 per ten grams in the national capital on Friday on slackened demand at existing higher levels amid weak global cues.

However, silver rose for the third straight session by adding Rs. 375 to Rs. 48,800 per kg on increased off-take by industrial units and coin makers.

Traders said besides sluggish demand at existing higher levels, a weak global trend mainly kept pressure on gold prices.

Gold in London, which normally sets price trend on the domestic front, fell by $3 to $1,317.10 an ounce.

Sentiment also weakened as rising equity market lured investors to shift funds from bullion to stocks for quick gains, they said.

On the domestic front, gold of 99.5 per cent purity fell to Rs. 31,300 per ten grams, after gaining Rs. 1,070 in last two days.

Sovereign held steady at Rs. 25,200 per piece of eight grams.

On the other hand, weekly-based delivery of silver advanced by Rs. 375 to Rs. 48,500 per kg. The white metal had gained Rs. 1,375 in the previous two sessions.

Silver coins lacked the necessary buying support and tumbled by Rs. 1,000 to Rs. 85,000 for buying and Rs. 86,000 for selling of 100 pieces.