New Delhi: Gold prices fell Rs130 to hit a 10-month low of Rs28,580 per 10 grams on Friday amid a weakening global trend and considerable fall in demand from jewellers at the domestic spot market. Silver, however, firmed up further by Rs250 to Rs41,850 per kg due to increased offtake by industrial units and coin makers. Traders said sentiment was downbeat, largely in step with a subdued global trend, as a surging dollar somewhat took the sheen off the precious metals as a safe haven. Besides, a decline in demand from jewellers in view of the prevailing cash crunch weighed heavy on gold prices, they said. Globally, gold fell 0.15% to $1,168.60 an ounce in Singapore.
The government on 8 November had scrapped old series Rs500 and Rs1,000 notes to flush out black money, leading to a cash crunch in the market. In the national capital, gold of 99.9 % and 99.5% purity fell by Rs130 each to Rs28,580 and Rs28,430 per 10 grams, respectively—a level last seen on 9 February when it had closed at Rs28,585.
Sovereign, however, continued to be sought at the previous level of Rs24,200 per piece of eight grams. On the other hand, silver ready advanced by Rs250 to Rs41,850 per kg, but weekly-based delivery drifted lower by Rs320 to Rs41,460 for want of buying support.
On the other hand, silver coins remained steady at Rs73,000 for buying and Rs74,000 for selling of 100 pieces in scattered deals.