Gold price fell due to weak demand from local jewellers and retailers even as the metal strengthened overseas. Silver followed suit and lost another Rs. 200 at Rs. 39,700 per kg due to lack of buying support from industrial units and coin makers.

Traders said muted demand from local jewellers and retailers at the domestic spot market mainly kept pressure on gold prices but a better trend overseas capped the fall. Globally, gold rose 0.21 per cent to $1,269 in Singapore. In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined further by Rs. 70 each to Rs. 29,300 and Rs. 29,150 per 10 grams, respectively.

The precious metal had lost Rs. 425 in the previous three sessions. Sovereign, however, held steady at Rs. 24,400 per piece of eight grams. Following gold, silver ready drifted lower by Rs. 200 to Rs. 39,700 per kg and weekly-based delivery by Rs. 140 to Rs. 39,475 per kg. Silver coins too plunged by Rs. 1,000 to Rs. 72,000 for buying and Rs. 73,000 for selling of 100 pieces.