Gold prices fall by Rs250 after demand softens

New Delhi-India (Nov 21)   Gold prices declined further by Rs250 to Rs30,450 per 10 grams on Tuesday reflecting sluggish global trend and hit by a considerable fall in domestic demand. Silver followed suit and fell by Rs400 to Rs40,400 per kg on poor offtake by industrial units and coin makers.

Traders said, sentiment was downbeat, largely in keeping with a weak global trend as the dollar surged against a basket of currencies that eroded the metals’ appeal as safe-haven assets coupled with fall in demand from local jewellers and retailers at the domestic spot markets.

Globally, gold rates fell 1.35% to USD 1,276 an ounce and silver by 2.43% to $16.86 an ounce in New York in Monday’s trade. Diversion of funds towards the soaring equity markets also weighed on the prices, they said.

In the national capital, gold of 99.9% and 99.5% purity plunged by Rs250 each to Rs30,450 and Rs30,300 per 10 grams, respectively. It had lost Rs75 on Monday. Sovereign, however, remained unaltered at Rs24,700 per piece of eight gram in limited deals.

In sync with gold, silver ready dropped further by Rs400 to Rs40,400 per kg and weekly-based delivery by Rs505 to Rs39,395 per kg. Silver coins, however, maintained a steady trend at Rs74,000 for buying and Rs75,000 for selling of 100 pieces.

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