Gold prices declined by Rs 30 to Rs 18,340 per ten grams Saturday as retail customers postponed
their buying till Sunday's auspicious 'Akshiya Tritiya'festival, even as prices remained perched at record levels in international markets over the past week.
Gold prices which had surged to near record levels in the last one-week, dipped slightly on the eve of Akshiya Tritiya, considered an auspicious occasion in Hindu mythology for
making token purchases for lasting prosperity.
Marketmen said despite gold prices climbing to near all-time high levels in the past week, jewellers still expect buying activity to double Sunday.
"We are still hopeful of a rise in demand for gold on the festival tomorrow on religious grounds, even as the prices reach close to record high levels," said Pawan Gupta of P P Jewellers.
However, a few other market experts were of the opinion that the gold prices were more closely linked to international trends.
"There may be little buying for the festival, but prices reaching beyond existing levels might hamper the activity," said All India Sarafa (Bullion) Merchant Association President
Sheel Chand Jain.
He said a religious event like Ashiya Tritiya would have little impact on gold prices.
The price of gold in overseas markets,
which normally sets the trend on the domestic front, declined by USD 1.20 to USD 1,231.40 dollar an ounce.
In line with the general weakening trend, silver prices fell sharply on lack of buying support from industrial units amid a weakening global trend.
Standard gold and ornaments fell by Rs 30 each to Rs 18,340 and Rs 18,190 per ten grams. Sovereigns fell by Rs 25 to Rs 14,400 per piece of eight grams.
Silver ready fell by Rs 300 to Rs 29,600 per kg and weekly-based delivery by Rs 250 to Rs 29,600 per kg. The price of silver coins remained unchanged at Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.