Gold falls Rs 195 per 10 gram; silver down Rs200 per kg

New Delhi-India (Mar 10)  Taking weak cues from overseas markets and subdued demand from jewellers, gold on Tuesday plunged by Rs195 to Rs26,430 per ten gram and silver by Rs200 to Rs36,000 per kg in Delhi bullion market.

Traders said besides easing demand from jewellers, a weak global trend as stronger dollar reduced appeal of the precious metals dampened the sentiments.

Globally, gold in Singapore, which normally set price trend on the domestic front, fell 0.6% to $1,159.85 an ounce, the lowest since 1 December as the dollar extended gains on speculation the Federal Reserve may raise interest rates this year as the economy recovers. Silver also fell by 0.5% to $15.68 an ounce, the lowest since 5 January.

In the national capital, gold of 99.9 and 99.5% purity slumped by Rs195 each to Rs26,430 and Rs26,230 per ten gram respectively. It had gained Rs85 on Monday. Sovereign, however, remained unaltered at previous level of Rs23,600 per piece of eight gram in restricted deals.

Silver ready remained under selling pressure and declined by another Rs200 at Rs 36,000 per kg and weekly-based delivery by Rs310 to Rs35,690 per kg. On the other hand, silver coins maintained steady trend at Rs56,000 for buying and Rs57,000 for selling of 100 pieces.

Source: LiveMint