Gold hits 11-month low of Rs 27,500

May 30, 2014

New Delhi-India (May 30)  Extending its downward journey for the fourth straight session, gold prices tumbled by Rs 200 to hit nearly 11-month low of Rs 27,500 per ten grams in the national capital on Thursday amid a weak trend in global markets.

Besides, subdued demand from jewellers and retailers and a weak trend in futures trade also weighed on gold prices.

Silver also remained under pressure for the fifth straight day and fell by Rs 500 to Rs 40,500 per kg.

"Weak global cues and falling demand from jewellers on hopes of further dip in prices are pulling down gold prices", jewellers said.

Sentiments remained bearish as gold fell to 16-week low in the overseas markets as positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus which has dimmed the metal's appeal.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.5 per cent to $1,251.86 an ounce, the lowest since February 4 and silver by 0.9 per cent to $18.85 an ounce, the lowest since May 1.

Meanwhile, at the Multi Commodity Exchange (MCX), gold for delivery in June was down by 0.45 per cent to Rs 26,712 per 10 grams.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 200 each to Rs 27,500 and Rs 27,300 per 10 grams, respectively, a level last seen on July 11 last year. It had lost Rs 620 in previous three days.

Sovereign, however, held steady at Rs 24,600 per piece of eight grams in limited deals.

In a similar fashion, silver ready moved down by Rs 500 to Rs 40,500 per kg and weekly-based delivery by Rs 360 to Rs 39,990 per kg. The white metal had lost Rs 700 in last four days.

Silver coins also nosedived by Rs 2,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

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