Gold loses sheen, drops Rs 300 on demand slump, global cues

NEW DELHI: Gold prices tumbled by Rs 300 to Rs 29,250 per 10 grams at the bullion market on Thursday, tracking a weak trend overseas amid fall in demand from local jewellers. Silver, however, strengthened by Rs 50 to Rs 42,300 per kg backed by increased offtake by industrial units and coin makers.

Traders said a weak trend in the overseas markets led to a fall in gold prices and eroded appeal of the metal as a safe-haven after the US dollar strengthened against a basket of major currencies amid growing expectations for more US interest rate increases this year. Globally, gold fell by 0.22 per cent to $1,250.60 an ounce in Singapore.

Besides, easing demand from local jewellers and retailers at current levels also dampened sentiment, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 300 each to Rs 29,250 and Rs 29,100 per 10 grams, respectively. The precious metal had gained Rs 200 yesterday. Sovereign also declined by Rs 100 to Rs 24,400 per piece of eight grams.

On the other hand, silver ready remained firm and up by another Rs 50 to Rs 42,300 per kg and weekly-based delivery by Rs 70 to Rs 42,220 per kg.

Silver coins remained unaltered to Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.