Gold prices plunge on weak global cues, slack demand
New Delhi: Gold prices tumbled by Rs300 to Rs30,200 per 10 grams at the bullion market on Monday, taking cues from a weak trend overseas and slack demand from local jewellers. Silver also fell by Rs150 to Rs39,000 per kg on reduced offtake by industrial units and coin makers.
Traders said that, besides a weak trend in the overseas market as strength in dollar reduced appeal for the precious metal as a safe-haven, fall in demand from local jewellers and retailers at domestic spot market weighed on the gold prices.
Globally, gold rate fell by 0.46% to $1,273.70 an ounce and silver by 0.40% to $16.36 an ounce in Singapore.
In the national capital, gold of 99.9% and 99.5% purity dived Rs300 each to Rs30,200 and Rs30,050 per 10 grams, respectively. The precious metal had gained Rs250 in the previous session. Sovereign also slipped by Rs100 to trade at Rs24,600 per piece of eight grams.
Following gold, silver ready dropped by Rs150 to Rs39,000 per kg and weekly-based delivery by Rs10 to Rs37,570 per kg. Silver coins, however, remained flat at Rs73,000 for buying and Rs74,000 for selling of 100 pieces.