Gold falls on slackened demand; silver rises

New Delhi, Oct 18. Snapping a two-day rising trend, gold prices fell by Rs 120 to Rs 31,500 per ten grams in the national capital today on slackened demand at existing higher levels amid weak global cues. However, silver rose for the third straight session by adding Rs 375 to Rs 48,800 per kg on increased offtake by industrial units and coin makers. Traders said besides sluggish demand at existing higher levels, a weak global trend mainly kept pressure on gold prices. Gold in London, which normally sets price trend on the domestic front, fell by USD 3 to USD 1,317.10 an ounce. Sentiment also weakened as rising equity market lured investors to shift funds from bullion to stocks for quick gains, they said. On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 120 each to Rs 31,500 and Rs 31,300 per ten grams, respectively after gaining Rs 1,070 in last two days. Sovereign held steady at Rs 25,200 per piece of eight grams. On the other hand, silver ready advanced by Rs 375 to Rs 48,800 per kg and weekly-based delivery by the same margin to Rs 48,500 per kg. The white metal had gained Rs 1,375 in the previous two sessions. On the other hand, silver coins lacked necessary buying support and tumbled by Rs 1,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.