Gold prices fall Rs 100 on profit-booking, subdued global trend

Gold prices on Monday dropped by Rs 100 to Rs 35,470 per 10 gram at the bullion market here due to profit-booking and subdued global trends. Silver also fell by Rs 25 to Rs 39,175 per kg on reduced offtake from industrial units and coin makers.

Gold prices declined in global markets in early trade as investors hooked onto bright spots in Chinese economic data. The data showed that urban investment, retail purchases and industrial output improved in June, boosting appetite for riskier assets. The overall GDP growth in the second quarter was 6.2 per cent, the slowest since the early 1990s.

Spot gold dropped 0.3 per cent to USD 1,414 an ounce in New York due to profit booking, while silver was up at USD 15.41 per ounce. According to the All India Sarafa Association, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 35,470 and Rs 35,300 per 10 gram, respectively, here.

Sovereign gold held steady at Rs 27,400 per eight gram. On Saturday, the precious metal had risen by Rs 170 to Rs 35,570 per 10 gram and silver surged Rs 175 to Rs 39,200 per kg.

Meanwhile, in Mumbai, pure gold traded down at Rs 34,729 per 10 grams while standard gold slipped to Rs 34,590 per 10 grams. Silver ready Monday declined by Rs 25 to Rs 39,175 per kg and weekly-based delivery advanced by Rs 10 to Rs 38,400 per kg.

Prices of silver coins held flat at Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.