Gold prices plunge Rs250 on global cues, low demand

New Delhi-India (Sept 28)  Gold prices tumbled Rs250 to Rs30,750 per 10 grams at the bullion market on Thursday, largely on weak trend overseas amid waning demand from local jewellers. Silver also dropped by Rs300 to Rs40,500 per kg due to reduced offtake by industrial units and coin makers.

Traders said sentiment turned bearish on weak trend overseas following heightened expectations that the US Federal Reserve will raise interest rates again this year, strengthening the dollar and reduced the appeal for gold as a safe haven.

Globally, gold traded 0.30% lower at $1,278.80 an ounce and silver by 0.30% to $16.68 an ounce in Singapore.

Easing demand from local jewellers and retailers at prevailing levels too weighed on gold prices, traders said. In the national capital, gold of 99.9% and 99.5% purity slumped by Rs250 each to Rs30,750 and Rs30,600 per 10 grams, respectively. The metal had gained Rs300 in last two days. Sovereign, however, continued to be traded at the last level of Rs24,700 per piece of eight grams in limited deals.

Tracking gold, silver ready fell by Rs300 to Rs40,500 per kg and weekly-based delivery by Rs275 to Rs39,665 per kg. Silver coins, however, remained steady at Rs74,000 for buying and Rs75,000 for selling of 100 pieces.

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