Gold price falls to Rs. 30,550; silver drops by Rs. 600/kg

Mumbai-India (Oct 3)  Gold prices plunged Rs. 200 to Rs. 30,550 per ten gram at the bullion market today, taking weak cues from overseas markets, and due to fall in demand from local jewellers.

Silver also dropped by Rs. 600 to Rs. 40,200 per kg due to reduced offtake by industrial units and coin makers.

Sentiment weakened largely in sync with a weak trend overseas where gold slid to a seven-week low after strong US manufacturing data strengthened the dollar and eroded the appeal for the precious metal as a safe haven, traders said.

In addition, fading demand from local jewellers and retailers at the domestic spot market too weighed on the prices.

Globally, gold fell 0.14 per cent to $1,268.70 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs. 200 each to Rs. 30,550 and Rs. 30,400 per 10 gram, respectively. Sovereign however remained unaltered at Rs. 24,700 per piece of eight gram.

In line with the overall trend, silver ready drifted down by Rs. 600 to Rs. 40,200 per kg and weekly-based delivery by Rs. 455 to Rs. 39,285 per kg. Silver coins however remained flat at Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.

BusinessLine