Gold prices fall by Rs 210 on muted demand

New Delhi: Gold prices on Wednesday dropped by Rs 210 to Rs 34,470 per 10 gram at the bullion market in the national capital due to tepid demand from jewellers, according to the All India Sarafa Association.

Silver rates, however, surged by Rs 450 to Rs 41,800 per kg on increased offtake by industrial units and coin makers.

The prices of gold in the global market were also tad higher at USD 1,341.48 an ounce as against Tuesday's USD 1,323.80 an ounce. Silver prices too moved up to USD 16.00 an ounce in New York.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 210 each to Rs 34,470 and Rs 34,320 per 10 gram, respectively.

Sovereign gold continued to rule flat at Rs 26,400 per piece of 8 gram.

Traders attributed the subdued trend in the precious metal to lacklustre demand from local jewellers. But, a firming trend overseas limited the fall in prices to some extent.

Silver ready advanced by Rs 450 to Rs 41,800 per kg and and the weekly-based delivery rose by Rs 374 to Rs 40,551 per kg.

Silver coins continued to be traded at Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces.