Gold prices declined by Rs. 100 to Rs. 29,350 per 10 grams today due to low demand on account of prevailing cash crunch in the domestic market following demonetisation of high value notes as well as a weak trend overseas.
While, silver recovered by Rs. 700 to Rs. 41,435 per kg on increased offtake by industrial units and coin makers.
Traders said apart from a weak trend overseas, muted demand from jewellers and retailers in view of scarcity of funds weighed on gold prices.
Government earlier this month had scrapped 500 and 1,000 rupee notes to crack down on black money, leading to cash crunch in the financial system.
Globally, gold fell by 0.11 per cent to $1,186.60 an ounce in Singapore.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs. 100 each to Rs. 29,350 and Rs. 29,200 per 10 grams, respectively. The precious metal had gained Rs. 50 in yesterday’s trade.
Sovereign, however, held steady at Rs. 24,400 per piece of eight grams in scattered deals.
On the other hand, silver ready rebounded by Rs. 700 to Rs. 41,435 per kg and weekly-based delivery by Rs. 600 to Rs. 40,835 per kg.
Whereas, silver coins remained steady at Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.