Gold plunges Rs 270 on weak global cues, fall in demand

Gold prices went down by Rs 270 to Rs 31,380 per ten grams at the bullion market on Tuesday, tracking a weak overseas trend amid slump in demand from local jewellers.

Silver followed suit and lost Rs 100 to Rs 40,750 per kg due to reduced offtake by industrial units and coin makers.

Traders said sentiment dampened after gold traded slightly lower in the global markets as the US dollar recovered, while lingering US-China trade worries and political uncertainty over Brexit limited losses.

Globally, gold fell 0.09 per cent to USD 1,256.10 an ounce and silver by 0.28 per cent to USD 16.03 an ounce in Singapore.

Besides, easing demand from local jewellers and retailers at domestic spot market, weighed on the prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 270 each to Rs 31,380 and Rs 31,230 per ten grams, respectively.

Sovereign, however, edged up by Rs 50 to Rs 24,800 per piece of eight grams.

Following gold, silver ready declined by Rs 100 to Rs 40,650 per kg and weekly-based delivery by Rs 120 to Rs 39,875 per kg.

Silver coins however remained unaltered at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.