Gold price plunges to Rs 29,350 on weak global cues, muted spot demand

New Delhi-India (April 26)  Falling for the third straight session, gold prices plunged by Rs. 250 to trade at a two-week low of Rs. 29,350 per 10 grams at the bullion market today on weak global cues and muted demand from local jewellers.

Silver also dropped by Rs. 600 to Rs. 41,000 per kg due to reduced offtake by industrial units and coin makers.

Traders said a weak trend overseas, where investors favoured riskier assets on expectations that centrist candidate Emmanuel Macron will become France’s next president, mainly affected the sentiment here.

Globally, gold fell 0.02 per cent to $1,263.80 an ounce and silver by 0.17 per cent to $17.54 an ounce in Singapore.

Fading demand from local jewellers and retailers at the domestic spot market also fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs. 250 each to Rs. 29,350 and Rs. 29,200 per 10 grams, respectively. The precious metal has lost Rs. 400 in the last two days. It had ended at Rs. 29,350 on April 11.

Sovereign, however, remained unaltered at Rs. 24,400 per piece of eight grams.

Following gold, silver ready dropped by Rs. 600 to Rs. 41,000 per kg and weekly-based delivery by Rs. 685 to Rs. 40,265 per kg.

On the other hand, silver coins remained steady at Rs. 71,000 for buying and Rs. 72,000 for selling of 100 pieces.

Source: BusinessLine