Gold down by Rs 10 on weak demand, global trend

Gold prices declined for the second straight day in the national capital today by losing Rs 10 to Rs 31,400 per 10 grams on reduced offtake by stockists amid a weakening trend in the overseas markets.

With the drying up demand, silver ended flat at Rs 61,200 per kg.Traders said the gold prices continued to decline on reduced offtake following ending of marriage season tomorrow and a weakening trend in overseas markets.

They said the gold in overseas markets trading near the lowest level in a week as stalled US budget negotiations overshadowed record investor holdings.

Gold in international markets, which normally sets the price trend on the domestic front, fell marginally to USD 1,697.35 an ounce in Singapore.

On the domestic front, gold of 99.9 and 99.4 per cent purity declined by Rs 10 each to Rs 31,400 and Rs 31,200 per 10 grams, respectively. The metal had lost Rs 270 in the previous session.

Sovereigns held steady at Rs 25,500 per piece of eight grams.

Silver ready was unchanged at Rs 61,200 per kg, while weekly-based delivery dropped by Rs 410 to Rs 61,790 per kg on speculators buying. Silver coins held unchanged at Rs 80,000 for buying and Rs 81,000 for selling of 100 peices.

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