Gold weakened by Rs 250, silver slipped by Rs 1700

Price of Gold Due to lower demand among jewellers and retailers, the gold price witnessed the decline of Rs 250 in the Delhi bullion market to Rs 74,100 per 10 grams on Monday, according to the All India Sarafa Association.

In the previous trade, 99.9 percent pure gold had closed at Rs 74,350 per ten grams. Silver also skidded by Rs 1,700 to Rs 85,500 per kg over subdued demand from coin-makers and industrial units, according to the All India Sarafa Association.

While, gold of 99.5 percent purity in the national capital slumped by Rs 250 to Rs 73,750 per 10 grams. The fall in gold prices was attributed to weak demand from local jewellers as well as stockists by traders.

Comex gold was trading at a shade lower at $2,531.10 an ounce globally. "Gold prices rose to $2,564 an ounce on safe-haven demand due to a weak dollar and rising geopolitical tensions in West Asia," said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.

Also, strong consumer spending along with easing inflation and better GDP growth in the US has dampened expectations of more aggressive easing by the Federal Reserve, Chainwala said. In Asian trading hours, silver prices fell 0.52% to $28.99 an ounce.