New Delhi: Snapping a two day rising trend, gold fell by Rs 250 to Rs 28,040 per 10 grams on Thursday, on weak demand at existing high levels amid a weakening global trend.

Silver followed suit and lost Rs 500 to Rs 52,500 per kg on reduced offtake by industrial units.

The trading sentiment in gold turned bearish after it declined in global markets, as stronger-than-forecast demand for loans from European Central Bank boosted the dollar, dampening demand for alternative assets.

Gold in global markets, which normally sets the price trend on the domestic front, fell by 0.8 percent to USD 1,602.95 an ounce in Singapore.

In addition, slackened domestic demand at prevailing higher levels also fuelled the downtrend to a certain extent.

On the domestic front, gold of 99.9 and 99.5 percent purity fell by Rs 250 each to Rs 28,040 and Rs 27,900 per 10 grams, respectively. The metal had gained Rs 460 in the last two trading sessions.  However, sovereigns remained steady at Rs 23,300 per piece of eight grams.

In line with a general weakening trend, silver ready declined by Rs 500 to Rs 52,500 per kg and weekly-based delivery by Rs 590 to Rs 53,040 per kg. Silver coins also traded lower by Rs 1000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.

(Agencies)