New Delhi: Gold extended its slump for the second day as it slipped below the 9,000 mark by falling 250 to an over six-month low of 8,800 per 10 grams in the bullion market on Tuesday, tracking a subdued global trend.

Moreover, reduced offtake by jewellers owing to a considerable fall in demand at the domestic spot market in view of the prevailing cash crunch following demonetisation of high-value notes hurt sentiment. Silver too declined by Rs100 to Rs41,100 per kg on reduced offtake by industrial units and coin makers.

Traders said sentiment was downbeat, largely in sync with a weak global trend, where gold closed near 10-month lows as investors shrugged off the ongoing political turmoil in Italy that boosted appeal of equities and other riskier assets.

The government on 8 November had scrapped Rs500 and Rs1,000 rupee 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 plunged Rs250 each to Rs28,800 and Rs28,650 per 10 grams, respectively—a level last seen on 31 May when it had closed at Rs28,850.

The precious metal had lost Rs200 in Monday’s trade. Sovereign followed suit and traded lower by Rs100 at Rs24,300 per piece of eight grams. Following gold, silver ready declined by Rs100 to Rs41,100 per kg, but weekly-based one jumped by Rs835 to Rs41,200 on speculative activity. On the other hand, silver coins remained steady at Rs74,000 for buying and Rs75,000 for selling of 100 pieces in scattered deals.

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