Gold falls on selling by stockists, weak global cues

New Delhi, Mar 4: Gold prices dipped by Rs 60 to Rs 31,240 per ten grams in the national capital Tuesday on emergence of stockists selling and a weak global trend.

Silver also lost Rs 570 to Rs 47,330 per kg on reduced offtake by jewellers and industrial units.

Traders said stockists selling following a weak global trend as the metal declined from more than four-month high amid speculation that the crisis in Ukraine is easing, reduced demand for the precious metal as a safe haven.

Gold in Singapore, which normally sets price trend on the domestic front, fell by one per cent to USD 1,336.59 an ounce and silver by 0.8 per cent to USD 21.24 an ounce. They said investors shifting funds from bullion to rising equities for quick gains also influenced the sentiment.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 60 each to Rs 31,240 and Rs 31,040 per ten grams, respectively. It had gained Rs 200 Monday. Sovereign held steady at Rs 25,500 per piece of eight grams.

Silver ready dropped by Rs 570 to Rs 47,330 per kg and weekly-based delivery by Rs 770 to Rs 47,330 per kg. The white metal had gained Rs 1340 in the previous two sessions. Silver coins also plunged by Rs 1,000 to Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.