Gold declines on reduced offtake, weak global cues

New Delhi, Dec 16. Gold prices declined by Rs 250 to Rs 30,680 per ten grams in the national capital today on reduced offtake by jewellers and retailers at existing higher levels amid a weak global trend. Silver also dropped by Rs 400 to Rs 44,000 per kg on lack of buying support from industrial units and coin makers. Bullion merchants said reduced offtake by jewellers and retailers at existing higher levels and a weak global trend amid speculation that Federal Reserve may decide on cutting back asset purchases this week is likely to bring down the demand for the precious metals as a safe haven. Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 per cent to USD 1,234.90 an ounce and silver by 0.7 per cent to USD 19.57 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 250 each to Rs 30,680 and Rs 30,480 per ten grams, respectively. It had gained Rs 230 in the previous session. Sovereign followed suit and shed Rs 100 to Rs 25,200 per piece of eight grams. In a similar fashion, silver ready dropped by Rs 400 to Rs 44,000 per kg and weekly-based delivery by Rs 335 to Rs 44,440 per kg. The white metal had surged by Rs 770 during Saturday's trade. However, silver coins held steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces in restricted buying.