Gold falls on weak global cues, lacklustre demand

New Delhi: Gold shed Rs 50 to Rs 33,170 per 10 gram on Tuesday in line with subdued trend overseas and muted demand from local jewellers, according to the All India Sarafa Association.

Silver followed suit and slipped by Rs 100 to Rs 39,100 per kg owing to reduced offtake by industrial units and coin makers. Marketmen said a weak global trend was largely responsible for the fall in prices of the yellow metal.

In the international market gold eased, after hitting one-month high in the previous session, as a slight recovery in share markets and US Treasury yields reduced some of the precious metal's safe-haven appeal and slackened demand from local jewellers and retailers at domestic spot market.

Globally, gold fell 0.24 per cent to USD 1,319.20 an ounce and silver by 0.35 per cent to USD 15.56 an ounce in New York on Tuesday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 50 each to Rs 33,170 and Rs 33,000 per ten gram, respectively.

The precious metal had gained Rs 170 in Monday's trade. Sovereign gold, however, remained unaltered at Rs 26,400 per piece of eight gram.

Tracking gold, silver ready dropped by Rs 50 to Rs 39,100 per kg while weekly-based delivery traded a shade higher at Rs 38,365 per kg. Silver coins however maintained a steady trend at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.