Gold slides on weak global cues, muted demand

Gold prices fell by Rs 150 to Rs 30,100 per 10 grams at the bullion market today, tracking a weak trend overseas amid slackened demand from retailers at prevailing levels at domestic spot market. Silver remained under selling pressure for the third day and lost Rs 550 to Rs 41,050 per kg due to reduced offtake by industrial units and coin makers.

Bullion traders said a weak global trend where gold fell for a third day as the dollar rebounded on the possibility of a US interest-rate increase next month, dimming the metal’s appeal as an alternative investment, mainly led to the fall in gold and silver prices.

Globally, gold fell 0.6 per cent to USD 1,278.99 an ounce in Singapore. The metal had reached USD 1,303.82 on Monday, the highest intraday level since January 2015.

Besides, easing demand from retailers as well as jewellers at current level also weighed on the precious metals prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 150 each to Rs 30,100 and Rs 29,950 per 10 grams, respectively. It had gained Rs 50 yesterday. Sovereign, however, remained steady at Rs 23,300 per piece of eight grams in limited deals.

Following gold, silver ready dropped further by Rs 550 to Rs 41,050 per kg while weekly-based delivery dipped below Rs 41,000-mark by falling Rs 570 to Rs 40,730 per kg. Silver coins too plunged by Rs 1,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.