Gold snaps two-day gains on sluggish demand, global cues

New Delhi, Apr 8. Snapping a two-day rising streak, gold prices fell by Rs 40 to Rs 29,990 per ten grams in the national capital today owing to slackened demand at prevailing higher levels amid a weak global trend. Silver followed suit and lost Rs 200 at Rs 52,200 per kg owing to reduced offtake by industrial units and coin makers. Sentiment turned bearish after gold dropped in global markets as holdings in exchange-traded products declined and the dollar climbed, curbing demand for the metal as an alternative asset. Gold in global markets, which normally set price trend on the domestic front, fell by 0.2 per cent to USD 1,577.51 an ounce and silver by 0.2 per cent to USD 27.27 an ounce in London. In addition, sluggish spot demand at prevailing levels further fuelled the downtrend in precious metals. On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 40 each to Rs 29,990 and Rs 29,790 per ten grams, respectively. The yellow metal had gained Rs 530 in the previous two sessions. Sovereign held steady at Rs 25,100 per piece of eight gram in scattered deals. Similarly, silver ready fell by Rs 200 to Rs 52,200 per kg and weekly-based delivery by Rs 215 to Rs 51,325 per kg. The white metal had climbed Rs 800 on Saturday's trade. However, silver coins continued to be enquired at last level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.