Gold prices plunge by Rs100 on lacklustre demand

New Delhi-India (Feb 22)  Gold prices slumped by Rs100 to Rs31,350 per 10 gram at the bullion market on Thursday on fall in demand from local jewellers and retailers amid a weak trend overseas. However, silver recovered by Rs85 to Rs39,385 per kg on scattered enquiries from industrial units and coin makers.

Traders said gold prices sank on muted demand from jewellers following the end of wedding season. Besides, a weak global trend as minutes from the last US Federal Reserve indicated a hike in interest rates, strengthening the dollar and diminishing the appeal of gold as safe haven, aided the downtrend.

Globally, gold rate fell 0.23% to $1,321 an ounce and silver by 0.58% to $16.41 an ounce in Singapore.

In the national capital, gold of 99.9% and 99.5% purity fell by Rs100 each to Rs31,350 and Rs31,200 per 10 gram, respectively. The precious metal had lost Rs350 in last two days. Sovereign however remained unaltered at Rs24,800 per piece of eight gram.

On the other hand, silver ready recovered by Rs85 to Rs39,385 per kg and weekly-based delivery by Rs150 to Rs38,340 per kg. Silver coins continued to be traded at previous level of Rs74,000 for buying and Rs75,000 for selling of 100 pieces.

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