Gold prices fall to three-week low

Silver too tumbled by Rs2,720 per kg to close below the key mark Rs45,000 on heavy speculative unwinding


US gold futures climbed 0.2% to settle at US$1,224.30. Photo: Mint
US gold futures climbed 0.2% to settle at US$1,224.30. Photo: Mint

Mumbai: Gold prices on Tuesday plunged by Rs485 to trade at almost 3-week low of Rs 29,880 per 10 grams at the bullion market amid subdued demand from jewellers and retailers.

Silver too tumbled by Rs2,720 per kg, almost 3-week low, to close below the key mark Rs45,000 on heavy speculative unwinding. Standard gold (99.5 per cent purity) declined by Rs485 to end at Rs29,880 per 10 grams from last Friday’s close of Rs 30,365.

The level has not been seen since 18 October. Pure gold (99.9 per cent purity) also fell by a similar margin to settle at Rs30,030 per 10 grams compared with Rs30,515 earlier.

Silver (.999 fineness) slumped by Rs2,720 per kg to settle at Rs42,700 as against Rs45,420 previously. The level has not been seen since 21 October this year.

Globally, gold edged higher, snapping a three-session losing streak, on uncertainty over the effect of policies promised by US President-elect Donald Trump and expectations of higher interest rates in December. Spot gold added 0.5% to US$1,226.06 an ounce in early European trade, having slipped on Monday to its lowest since 3 June at US$1,211.08.

US gold futures climbed 0.2% to US$1,224.30. Among other precious metals, silver was up 0.8% at US$ 17.02 an ounce, having hit its lowest since 8 June at US$6.61 in the previous session.

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