Gold prices dipped by Rs 250 to close at Rs 30,100 per 10 grams at the bullion market on Monday as the auspicious Akshaya Tritiya festival failed to enthuse the spirit of buyers.
Moreover, a weak global trend weighed on the precious metal.
Silver also turned weak and dropped by Rs 350 to Rs 41,200 per kg on reduced offtake by industrial units and coin makers.
Traders said apart from a weak trend in overseas markets as dollar holds firm after a weak US payroll report, muted buying by jewellers due to tepid demand at prevailing levels, led to the fall in gold prices.
Globally, gold in Singapore, which normally sets price trend on the domestic front, fell by 0.7 per cent to $1,279.80 an ounce after hitting a five-month high last week. Silver too eased half a per cent to $17.37 an ounce.
The festival is considered to be an auspicious day to make token purchases of gold ornaments, jewellery, gold coins and other gold items.
This, traders said, restricted the fall to some extent.
In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 250 each to Rs 30,100 and Rs 29,950 per 10 grams, respectively. It had gained Rs 250 in the previous two sessions.
The sovereign, however, remained flat at Rs 23,300 per piece of eight grams in limited deals.
Meanwhile, last year also on Akshaya Tritiya, gold had ended lower by Rs 100 at Rs 27,100.
“The overall sentiment is weak for gold even on auspicious Akshaya Tritiya and ongoing wedding season but buying activity is likely to pick up later in the day, said Gaurav Anand,” a Delhi-based jeweller.
Following gold, silver ready moved down by Rs 350 to Rs 41,200 per kg and weekly-based delivery by Rs 365 to Rs 41,365 per kg.
Silver coins were unaltered at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.