Gold falls Rs 80, silver declines Rs 180 on weak demand

Gold prices fell by Rs 80 to Rs 56,880 per 10 grams in the national capital on Monday due to weak local demand, according to HDFC Securities. In the previous trade, the precious metal closed at Rs 56,960 per 10 grams.

Silver also declined by Rs 180 to Rs 68,795 per kg from Rs 68,975 per kg.

"Spot gold prices in Delhi markets traded at Rs 56,880 per 10 grams, down Rs 80 per 10 grams," said an analyst at HDFC Securities.

According to the analyst, retail demand in the Indian market remained sluggish due to high prices and some dealers offered discounts to attract customers.

In the overseas market, gold was quoting lower at USD 1,923 per ounce and silver was down at USD 23.66 per ounce.

Comex gold prices traded sideways to negative in Asian trading hours on Monday.

"Comex Gold prices corrected last week after price hit fresh swing high of USD 1,949.80 on back of profit taking by short-term future traders before this week FOMC meeting, however price managed to closed up by 0.10 per cent on weekly basis," the analyst added.