Silver falls by Rs 500/kg; gold steady on weak demand

Silver prices slumped below the Rs 40,000 per kg level by falling Rs 500 to Rs 39,800 per kg at the bullion market today, tracking a weak trend overseas amid reduced industrial offtake.

Gold, however, ruled steady at Rs 31,250 per ten grams largely on scattered buying. Gold of 99.9 per cent and 99.5 per cent purity ruled flat at Rs 31,250 and Rs 31,100 per ten grams, respectively. Sovereign followed suit and maintained a steady trend at Rs 24,800 per piece of eight grams.

Traders had yesterday observed a ‘bandh’ to protest against the ongoing sealing of business establishments in the city. Marketmen said apart from a weak trend overseas, fall in demand from industrial units and coin makers at the domestic spot market mainly led to the fall in silver prices.

Globally, silver fell 3.63 per cent to $16.58 an ounce and gold by 1.22 per cent to $1,331.90 an ounce in New York yesterday. In the national capital, silver ready plunged by Rs 500 to Rs 39,800 per kg and weekly-based delivery by Rs 835 to Rs 38,605 per kg. Silver coins, however, held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.