Gold remains weak on sluggish demand, global cues

New Delhi, Mar 5. Extending losses for the second day, gold prices declined by another Rs 140 to Rs 31,100 per ten gram in the national capital today on sluggish demand amid a lower global trend. However, silver recovered by Rs 70 to Rs 47,400 per kg on scattered buying by industrial units. Traders said besides sluggish demand at prevailing higher levels, a weak global trend where gold declined from a 17-week high following easing tensions between Russia and Ukraine mainly reduced demand for the precious metals as a safe haven. On the other hand, some buying by industrial units helped silver to trade higher, they said. Gold in New York, which sets price trend on the domestic front, fell by 1.18 per cent to USD 1334.40 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 140 each to Rs 31,100 and Rs 30,900 per ten gram respectively. It had shed Rs 60 yesterday. Sovereign declined by Rs 50 to Rs 25,450 per piece of eight gram. On the other hand, silver ready recovered by Rs 70 to Rs 47,400 per kg and weekly-based delivery by similar margin to Rs 47,400 per kg, after losing Rs 570 in last trade. Meanwhile, silver coins lacked necessary follow up support and plunged by Rs 1,000 to Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.