Gold Prices Fall Rs. 200, Near Rs. 29,000

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New Delhi: Gold prices drifted lower by Rs. 200 to Rs. 29,050 per 10 gm at the bullion market here today, tracking a weak trend overseas amid tepid demand in the domestic spot market on prevailing cash crunch following demonetisation of high value notes.

Silver strengthened however by Rs. 200 to Rs. 41,200 per kg on increased offtake by industrial units and coin makers.

Traders said that apart from a weak trend overseas, fall in demand from jewellers and retailers in view of scarcity of funds weighed on gold prices.

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Government on November 8 had announced the demonetization of 500 and 1,000 rupee notes in a bid to flush out black money, leading to cash crunch in the financial system.

Globally, gold fell by 0.64 per cent to $1,169.60 an ounce in Singapore.

In the national capital, 99.9 per cent and 99.5 per cent purity gold fell by Rs. 200 each to Rs. 29,050 and Rs. 28,900 per 10 grams respectively. The precious metal had gained Rs. 250 in Saturday’s trade.

Sovereign, however, held steady at Rs. 24,400 per piece of eight grams in scattered deals.

On the other hand, silver ready advanced by Rs. 200 to Rs. 41,200 per kg and weekly-based delivery by Rs. 40 to Rs. 40,365 per kg.

Whereas, silver coins remained steady at Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.