Gold price hits 1-month low on weak global cues

New Delhi-India (Nov 4)  Extending losses for a sixth straight session, gold prices slumped to over one-month low of Rs 26,430 by plunging Rs 270 at the bullion market on Wednesday in step with a weakening trend overseas amid slackened demand from jewellers and retailers.

Silver prices too remained under pressure for a third day and lost Rs 180 to Rs 36,070 per kg on poor offtake by industrial units and coin makers. Traders attributed persistent fall in gold prices to a weak trend in global market as investors weighed prospects of a higher US interest rates ahead of Federal Chief first speech since the last central bank meeting and low demand from jewellers.

Globally, gold fell 1.43 per cent to Rs 1,117.20 an ounce and silver by 0.97 per cent to $15.26 an ounce in New York in Tuesday's trade. In the national capital, gold of 99.9 and 99.5 per cent purity tumbled Rs 270 each to Rs 26,430 and Rs 26,280 respectively, a level last seen on September 30. The precious metal had lost Rs 565 in the previous five sessions.

Sovereign, however, held steady at Rs 22,300 per piece of eight grams. Tracking gold, silver ready declined by Rs 180 to Rs 36,070 per kg and weekly-based delivery by Rs 370 to Rs 35,850 per kg. Silver coins also slumped by Rs 1,000 to Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.

Source:  BusinessToday