Gold plunges Rs 250 on global cues, low demand

New Delhi: Gold prices tumbled Rs 250 to Rs 30,750 per 10 grams at the bullion market on Thursday, largely on weak trend overseas amid waning demand from local jewellers. Silver also dropped by Rs 300 to Rs 40,500 per kg due to reduced off take by industrial units and coin makers.

Market men 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.

Meanwhile, gold traded 0.30 per cent lower at USD 1,278.80 an ounce and silver by 0.30 per cent to USD 16.68 an ounce in Singapore. Besides, easing demand from local jewellers and retailers at prevailing levels too weighed on gold prices, market men said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 250 each to Rs 30,750 and Rs 30,600 per 10 grams, respectively.

The yellow metal had gained Rs 300 in last two days. Sovereign, however, continued to be traded at the last level of Rs 24,700 per piece of eight grams in limited deals.

Tracking gold, silver ready fell by Rs 300 to Rs 40,500 per kg and weekly-based delivery by Rs 275 to Rs 39,665 per kg.

Silver coins, however, remained steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

PTI