Gold prices retreated from a 21-month high by plunging Rs 600 to Rs 29,050 per ten grams at the bullion market today on weak cues from overseas markets amid fall in demand from jewellers at existing levels.
The yellow metal snapped its biggest eleven-day rising streak this year.
Silver too shed Rs 50 at Rs 37,800 per kg on reduced offtake by industrial units and coin makers.
Traders said besides a weak global trend, fall in demand from jewellers and retailers at prevailing higher levels at domestic spot market, mainly dragged down gold prices from the 21-month high.
Globally, the yellow metal fell by 0.68 per cent to USD 1,237.90 an ounce and silver by 0.03 per cent to USD 15.75 an ounce in New York in yesterday’s trade.
In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs 600 each to Rs 29,050 and Rs 28,900 per ten grams respectively.
The precious metal had gained Rs 2,600 in the previous 11 days largely backed up by firming trend overseas where it soared to over one-year high as tumbling equities boosted demand for the safe-haven investment.
Sovereign followed suit and declined by Rs 100 to Rs 23,000 per piece of eight grams.
In line with the overall trend, silver ready eased by Rs 50 to 37,800 per kg and weekly-based delivery slipped below the Rs 38,000-mark by falling Rs 160 to Rs 37,985 per kg.
On the other hand, silver coins held steady Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.