Gold Price falls on reduced demand

Gold prices fell by Rs 30 to Rs 12,070 per 10 grams in the bullion market here today on reduced offtake amid weak global trend.

Marketmen said sluggish demand against adequate supply and reports of weak global markets mainly led to decline in gold prices. Buying activity in gold also reduced owing to off marriage and festival season and some investors shifted their funds from gold to rising equity market, they added.

Global trend which normally set prices band here in domestic markets, fell by 4.40 dollar to 880.45 dollar an ounce and silver by 10.5 cents to 16.71 dollar in overseas markets. Standard gold and ornaments lost Rs 30 each to Rs 12,070 and Rs 11,920 per 10 grams respectively, while sovereign, remained flat at Rs 9,875 per piece of eight gram. In similar fashion, silver ready dropped by Rs 350 to Rs 22,850 per kg, but silver weekly-based delivery gained Rs 210 to Rs 23,200 per kg.

Silver coins also traded lower by Rs 100 to Rs 26,600 for buying and Rs 26,700 for selling of 100 coins on reduced offtake by coins makers.