New Delhi : Gold prices drifted lower by Rs 200 to Rs 29,050 per 10 gm at the bullion market in New Delhi today, tracking a weak trend overseas amid tepid demand in the domestic spot market on prevailing cash crunch following demonetisation of high value notes.
Silver strengthened however by Rs 200 to Rs 41,200 per kg on increased offtake by industrial units and coin makers.
Traders said that apart from a weak trend overseas, fall in demand from jewellers and retailers in view of scarcity of funds weighed on gold prices.
Government on November 8 had announced the demonetisation of 500 and 1,000 rupee notes in a bid to flush out black money, leading to cash crunch in the financial system.
Globally, gold fell by 0.64 per cent to USD 1,169.60 an ounce in Singapore.