Mumbai: Gold prices drifted lower at the bullion market on Monday on lack of demand from jewellers and retailers at prevailing levels even as the metal strengthened overseas.
However, silver staged a strong comeback on emergence of buying support from industrial users.
Standard gold (99.5 purity) slipped by Rs 20 to conclude at Rs 28,035 per 10 grams from last Friday’s closing level of Rs 28,055. Pure gold (99.9 purity) also fell by a similar margin to close at Rs 28,185 per 10 grams from Rs 28,205.
Silver (.999 fineness) surged by Rs 235 to finish at Rs 38,720 per kg as against Rs 38,485 earlier.
Globally, gold rose after signs of political turmoil with North Korea launching a successful missile test and a worldwide cyber attack fuelled demand for bullion as a safe haven, while weaker than-expected US data pushed the US dollar and bond yields lower.
Also Read: Global gold prices firm on weak US data, North Korea concerns
Spot gold was up 0.3% at $1,231.49 an ounce at early trade, on track for a third day of gains after hitting an 8-week low of $1,213.81 last week. In other precious metals, silver was up 1% at $16.62 an ounce.
The net long in silver fell to the smallest since February 2016 from a record high last month.