Gold, silver tumble on heavy selling, global cues

January 31, 2014

Mumbai-India (Jan 31)  Gold tumbled by Rs 310 to Rs 30,290 per ten grams in the national capital on Friday on heavy sell-off by stockists and a weak global trend.

Silver also declined by Rs 900 to Rs 43,600 per kg on poor offtake by industrial units and coin makers amid a steep fall in international markets.

A similar weakening trend was also witnessed in Mumbai, as gold of 99.9 and 99.5 per cent purity fell by Rs 160 each to Rs 30,100 and Rs 29,950 per ten grams, respectively. Also, silver plunged by Rs 600 to Rs 44,450 per kg.

Traders said heavy selling by stockists, sparked by a weak global trend as faster economic growth signals more monetary stimulus cuts in future, mainly pulled down metal prices.

Gold in New York, which normally sets price trend at the domestic front, plunged by 1.94 per cent to $ 1,243.10 an ounce and silver by 2.92 per cent to $ 19.14 an ounce.

Besides, strengthening of the rupee against the American currency, which makes the import of the dollar-priced precious metals cheaper, further dampened the sentiment, they said.

At the domestic front, gold of 99.9 and 99.5 per cent purity suffered a setback of Rs 310 each to Rs 30,290 and Rs 30,090 per ten grams, respectively. Sovereign held steady at Rs 25,250 per piece of eight grams.

In a similar fashion, silver ready dropped by Rs 900 to Rs 43,600 per kg and weekly-based delivery by Rs 885 to Rs 43,315 per kg.

Silver coins held steady at Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces.

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