Gold plunges Rs 305 on global cues, poor demand

New Delhi: Gold prices tumbled Rs 305 to Rs 29,315 per 10 gm on the bullion market today on heavy selling by stockists, triggered by weak global trend. With the general weakening trend, silver dropped by Rs 700 to Rs 55,000 per kg on reduced offtake by industrial units and coins makers.

Poor demand among retail customers at prevailing higher levels further dampened the trading sentiment in both the precious metals. Sentiment remained bearish after gold in overseas markets fell as a stronger dollar curbed demand for the metal as an alternative asset and as commodity prices slipped.

Gold in global markets, which normally set price trend on the domestic front, fell 0.7 per cent to USD 1,627.74 an ounce in London. On the domestic front, gold of 99.9 and 99.5 per cent purity dipped by Rs 305 each to Rs 29,315 and Rs 29,175 per 10 gm, respectively. The metal had lost Rs 120 in the previous session. Sovereign followed suit and shed Rs 50 to Rs 23,750 per piece of eight gram.

Silver ready dropped by Rs 700 to Rs 55,000 per kg and weekly-based delivery by Rs 830 to Rs 55,305 per kg on reduced offtake by industrial units and coin makers. The metal had tumbled Rs 550 on Monday. Silver coins, too, plunged by Rs 3,000 to Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces.

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