Gold weakens further on global cues; silver slips below 42,000

New Delhi: Gold prices fell by another Rs 10 to Rs 29,800 per 10 grams at the bullion market today on weak trend overseas and easing demand from local jewellers, while silver saw a big slump, cracking below the Rs 42,000 mark.

 Silver lost Rs 660 to Rs 41,800 per kg due to reduced offtake by industrial units and coin makers.

A weak trend overseas and a strong US dollar dimmed the appeal for gold as a safe haven, traders said.

Globally, gold fell by 0.10 per cent to USD 1,280.40 an ounce and silver by 0.33 per cent to USD 17.94 an ounce in Singapore.

Tepid demand from local jewellers as well as retailers at the domestic spot market also fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shed Rs 10 each to Rs 29,800 and Rs 29,650 per 10 grams respectively. It had lost Rs 90 yesterday.

Sovereign, however, remained flat at Rs 24,500 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 660 to Rs 41,800 per kg and weekly-based delivery by Rs 430 to Rs 41,380 per kg.

On the other hand, silver coins continued to be traded at last level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.