Gold hits 4-month low, slips Rs 180 on overseas trend

Gold prices went down for the sixth straight day, plunging by Rs 180 to over 4-month low of Rs 29,400 per 10 grams at the bullion market on Monday, hurt by a sluggish trend overseas and lower demand from jewellers.

Silver also shed Rs 25 to Rs 37,775 per kg due to reduced offtake by industrial units and coin makers.

Traders said, other than the weakness in demand from local jewellers, a weak trend overseas on higher chances of a rate hike by the US Federal Reserve later this week diminishing appeal for precious metals as a safe haven investment, led to the fall.

Globally, the yellow metal fell by 0.54 percent to USD 1,241.40 an ounce and silver by 0.95 percent to USD 15.67 an ounce in New York in Monday's trade.

In the national capital, gold of 99.9 percent and 99.5 percent purity tumbled by Rs 180 each to Rs 29,400 and Rs 29,250 per 10 grams, the lowest since August 5. It had lost Rs 670 in the last five days.

Sovereign, however, held steady at Rs 24,400 per piece of eight grams.

In line with gold, silver ready went down by Rs 25 to Rs 37,775 per kg and weekly-based delivery slumped below the Rs 37,000-mark by falling Rs 215 to Rs 36,900 per kg.

Silver coins too plummeted by Rs 1,000 each to Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.