Gold tumbles on low demand, weak global cues

Snapping its three-day winning run, gold plunged by Rs.140 to Rs. 25,610 per ten grams at the bullion market today, as demand from jewellers at existing levels eased amid a weak trend overseas.

However, silver held steady at Rs. 34,100 per kg on scattered support from industrial units.

Bullion traders said besides weak global trend after the US economy grew faster than estimated last quarter, boosting the case for the Federal Reserve to continue raising interest rates, easing demand from jewellers at prevailing levels mainly kept pressure on the precious metal’s prices.

Globally, gold shed 0.55 per cent to USD 1,072.30 an ounce in New York in yesterday’s trade.

In addition, strengthening rupee against the dollar that made import of precious metals cheaper dampened sentiment, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity slumped by Rs.140 each to Rs. 25,610 and Rs. 25,460 per ten grams, respectively. It had gained Rs. 375 in the previous three sessions.

Sovereign, however, ruled steady at Rs. 22,200 per piece of eight grams in limited deals.

On the other hand, silver ready and silver weekly based delivery ended flat at Rs. 34,100 per kg and Rs. 34,180 per kg respectively.

Silver coins, however, continued at previous level of Rs. 48,000 for buying and Rs. 49,000 for selling of 100 pieces.

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