Gold slips on fall in demand

Gold prices declined by Rs 150 to Rs 17,000 per ten gram in the bullion market here today on fall in demand at existing higher levels even as the metal remained high in global markets. Silver followed suit and tumbled by Rs 370 to Rs 27,350 per kg on poor offtake by industrial units.

Marketmen said considerable fall in demand at existing higher levels mainly pulled down gold prices from record high level. Gold surged to Rs 17,150 per ten gram in the previous session after the metal in international markets remained on record setting spree ever since the Reserve Bank of India bought 200 tonnes of the precious metal from the International Monetary Fund last month.

They said the global trend, which normally set a price band in domestic market, failed to influence the trading sentiment.

Standard gold and ornaments, which had been on record breaking spree since the last two trading session, fell by Rs 150 each to Rs 17,000 and Rs 16,850 per ten gram respectively. Sovereign, however, held steady at Rs 13,425 per piece of eight gram.

Similarly, silver ready tumbled by Rs 370 to Rs 27,350 per kg and weekly-based delivery by Rs 310 to Rs 26,990 per kg respectively. Silver coins lost Rs 200 at Rs 33,500 for buying and Rs 33,600 for selling of 100 pieces.