New Delhi: Gold prices fell sharply by Rs 230 to Rs 29,300 per 10 grams in the bullion market here today on decline in demand at prevailing levels amid weak global cues.

Silver, on the other hand, gained Rs 200 to Rs 54,200 per kg on increased offtake by stockists.

Traders said sentiment in gold turned bearish on weakness in global markets as concern that Europe’s debt crisis will escalate pushed up the dollar, cutting demand for alternative investments.

Gold in Singapore lost 0.5 per cent to USD 1,551.35 an ounce.

Fall in domestic demand at existing higher levels also put pressure on the gold prices amid recovery in rupee’s value.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 230 each to Rs 29,300 and Rs 29,160 per 10 grams, respectively. It had gained Rs 65 in last three days.

Sovereign, however, remained flat at Rs 23,800 per piece of eight grams in limited deals.

Silver ready gained Rs 200 to Rs 54,200 per kg, while weekly-based delivery lost Rs 125 to Rs 54,065 per kg due to absence of speculative support.

Silver coins rose by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.