Gold price tumbles Rs235 on global cues, low demand

New Delhi-India (Sept 29)  Globally, gold lost 0.6% to $1,125.72 an ounce, its one-week low and silver retreated 0.5% to $14.52 an ounce after a 3.4$ slump on Monday. Photo: Pradeep Gaur/Mint

New Delhi: Tracking a weak overseas trend and slackened demand from jewellers, gold continued its slide for the third straight day as prices fell by Rs235 to Rs26,575 per ten gram in Delhi bullion market on Tuesday.

Traders said weak global cues on expectations that the US Federal Reserve will raise rates this year, countering demand for a haven, mainly dampened sentiments here.

Globally, gold lost 0.6% to $1,125.72 an ounce, its one-week low and silver retreated 0.5% to $14.52 an ounce after a 3.4$ slump on Monday. Besides, low demand from jewellers and retailers due to ongoing “Shraddhas”, an inauspicious fortnight in Hindu mythology for making fresh purchases, kept the metal under pressure.

In the national capital, gold of 99.9 and 99.5% purity tumbled by Rs235 each to Rs26,575 and Rs26,425 per ten gram, respectively. It had lost Rs440 in last two days. Sovereign also shed Rs50 at Rs22,350 per piece of eight gram.

Following gold, silver ready recorded a hefty fall of Rs900 to Rs34,700 per kg and weekly-based delivery by Rs1,050 to Rs34,830 per kg. In line with overall trend, silver coins nosedived by Rs1,000 to Rs50,000 for buying and Rs51,000 for selling of 100 pieces.

Source: LiveMint