Gold prices hit nearly 5-week low, silver slips on weak demand

MUMBAI: Gold prices fell to nearly five-week low at the bullion market here today on subdued demand from stockists as well as traders amid reduced local buying interest.

Silver also slipped on sustained speculative selling and lower industrial buying.

Standard gold (99.5 purity) dropped Rs 110 per 10 grams to close at Rs 30,980 from Wednesday's closing level of Rs 31,090.

Pure gold (99.9 purity) also went down by a similar margin to finish at Rs 31,120 from Rs 31,230.

Silver ready (.999 fineness) dipped by Rs 310 per kg to conclude at 61,730 from Rs 62,040 yesterday.

"The yellow metal is witnessing a break in buying for a fortnight due to the ongoing 'Pitru-Paksh' (a period considered inauspicious by Hindus)," dealers said.

In Europe, gold rose to hold on to its near 11-month high hit earlier this week, on strong euro as well as optimism over Spain's bailout amid Central bank monetary policy meetings later.

Spot gold was bid up by USD 1,788.54 an ounce in early trade, while spot silver was bid higher at USD 34.90 an ounce.