Gold plunges Rs 260 on global cues, muted demand, silver declines by Rs 160

Gold prices tumbled by Rs 260 to Rs 30,150 per 10 grams in the bullion market on Wednesday amid a weak global trend and easing demand from jewellers in domestic spot market. Silver also declined by Rs 160 to Rs 42,590 per kg on slow offtake by industrial units.

Traders said that besides a weak trend in overseas markets, fall in demand from jewellers in domestic spot market put pressure on gold prices.

Globally, gold fell by 0.56 per cent to USD 1,252.40 an ounce and silver by 1.02 per cent to USD 17.43 an ounce in New York in yesterday’s trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 260 each to Rs 30,150 and Rs 30,000 per 10 grams respectively. Gold prices spurted by Rs 170 on Monday. Market remained closed yesterday on account of “Dussehra”.

Sovereign too traded lower by Rs 100 to Rs 24,300 per piece of eight grams. Tracking gold, silver ready fell by Rs 160 to Rs 42,590 and weekly-based delivery by Rs 295 to Rs 42,090 per kg. Silver coins, however, gained Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.