Gold hits over 3-week low on sluggish demand, global cues

Gold prices plunge to hit an over three-week low of Rs26,810 per ten grams by losing another Rs180 at the bullion market

New Delhi: Hit by a domestic demand slump and weakening global trend, gold prices on Monday plunged to hit an over three-week low of 26,810 per ten grams by losing another 180 at the bullion market. Silver also remained under selling pressure and lost 315 at 35,600 per kg.

Traders said weak global cues amid the US Federal Reserve indicating that it may go on to raise interest rate this year eroded demand for the precious metals. Globally, gold which normally determines price trend on the domestic front, lost 0.7% to $1,137.73 an ounce and silver fell 1.1% to $14.94 an ounce in Singapore.

Besides fall in demand from jewellers and retailers following beginning of “Shraddhas", an inauspicious fortnight in Hindu mythology for making fresh purchases, kept pressure on precious metals, they said. In the national capital, gold of 99.9% and 99.5% fell further by 180 each to 26,810 and 26,660 per ten grams respectively, a level last seen on 3 September. The precious metal had lost 260 in Saturday’s trade.

Sovereign, however, remained steady at 22,400 per piece of eight gram. Tracking gold, silver ready dropped by 315 to 35,600 per kg and weekly-based delivery by 210 to 35,880 per kg. Silver coins also tumbled by 1,000 to 51,000 for buying and 52,000 for selling of 100 pieces on poor demand.