Gold prices plunge on muted demand, weak global cues
New Delhi: Gold prices fell by Rs105 to Rs30,275 per 10 gram at the bullion market on Wednesday owing to slackened demand from local jewellers amid a weak trend overseas. Silver followed suit and tumbled by Rs250 to Rs40,000 per kg due to reduced offtake by industrial units and coin makers.
Traders said easing demand from local jewellers and retailers at domestic spot market following the end of festive season mainly weighed on the prices. Besides, a weak trend overseas added to the downtrend.
Globally, gold rates fell 0.44% to $1,270.70 an ounce and silver by 0.83% to $16.69 an ounce in New York in Tuesday’s trade. Diversion of funds towards soaring equity markets also dampened the sentiment, traders said.
In the national capital, gold of 99.9% and 99.5% purity plunged by Rs105 each to Rs30,275 and Rs30,125 per 10 gram, respectively. It had gained Rs105 on Tuesday. Sovereign however was steady at Rs24,700 per piece of eight gram.
On the other hand, silver ready declined by Rs250 to Rs40,000 per kg and weekly-based delivery by Rs125 to Rs39,170 per kg. Silver coins however continued to be traded at the previous level of Rs74,000 for buying and Rs75,000 for selling of 100 pieces.
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