Gold, silver slide on subdued demand, global cues

New Delhi: Gold prices on January 1 fell by Rs 100 to Rs 27,100 per ten grams on the first trading day of 2015 in the national capital owing to slackened demand from jewellers amid a weak global trend.

Silver prices also fell by Rs 800 to Rs 36,200 per kg due to fall in demand from jewellers and industrial units. Traders said easing demand from jewellers and retailers at prevailing levels and a weak global trend reduced the appeal for bullion as an alternative asset.

Gold in New York, which normally sets price trend on the domestic front, fell by 1.4 per cent to USD 1,184.10 an ounce and silver by 4.2 per cent to USD 15.59 an ounce yesterday. In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 100 each to Rs 27,100 and Rs 26,900 per ten gram respectively.

Sovereign, however, traded at last level of Rs 23,700 per piece of eight gram in limited deals. In line with a general weak trend, silver ready dropped by Rs 800 to Rs 36,200 per kg and weekly-based delivery by Rs 980 to Rs 36,170 per kg. Silver coins also plunged by Rs 1,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.

Meanwhile, gold prices dropped by Rs 2,660, or nearly 10 per cent, to Rs 27,200 per ten grams during 2013 as the government tried to divert investors away from this 'unproductive asset' and a weak trend overseas. The year was even worse for silver that recorded a fall about 15 per cent in its price to Rs 37,000 per kg from 43,755.