Gold prices slump on low demand, weak global cues

New Delhi-India (Dec 15)  Gold prices tumbled by Rs155 to Rs29,510 per 10 gram at the bullion market on Friday on easing demand from local jewellers amid a weak trend overseas. Silver prices also declined by Rs480 to Rs37,800 per kg due to reduced offtake by industrial units and coin makers.

Traders said fall in demand from local jewellers and retailers at existing levels pulled down the gold prices. Besides, weak global cues as US Fed decided to hike interest rates, reducing the appeal of non-yielding bullion, dampened the sentiment.

Globally, gold rates fell 0.22% to $1,252.70 an ounce and silver by 1.06% to $15.80 an ounce in New York in Thursday’s trade. An appreciating rupee against the dollar also weighed on gold prices, making import of the precious metal cheaper.

In the national capital, gold of 99.9% and 99.5% purity fell by Rs155 each to Rs29,510 and Rs29,360 per 10 gram, respectively. The precious metal had gained Rs265 in the previous two days. Sovereign however held steady at Rs24,500 per piece of eight gram.

Following gold, silver ready slipped by Rs480 to Rs37,800 per kg and weekly-based delivery by Rs440 to Rs37,020 per kg. Silver coins however continued to be traded at the previous level of Rs70,000 for buying and Rs71,000 for selling of 100 pieces.

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