Gold prices crack on weak global cues, silver falls below Rs 40,000

Mumbai: Gold prices declined by Rs 50 to Rs 29,750 per 10 grams at the bullion market today, tracking a declining trend overseas amid muted demand by jewellers at the domestic spot market.

Silver also went below the Rs 40,000-mark by falling Rs 500 to Rs 39,950 per kg due to reduced off-take by industrial units and coin makers.

Traders said sentiment remained bearish, tracking a weak trend overseas where gold fell to a 3-week low on concerns that the Federal Reserve may raise interest rates as early as next month, as revealed by minutes of the April policy meeting, which dented bullion’s appeal.

Globally, gold fell 0.07 per cent to USD 1,253.80 an ounce in Singapore. It sank to USD 1,243.90 yesterday, the lowest since April 28, after a resurgent dollar hurt demand for the metal.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity came off by Rs 50 each to Rs 29,750 and Rs 29,600 per 10 grams, respectively.

Sovereign, however, held steady at Rs 23,200 per piece of eight grams in limited deals.

Following gold, silver ready dropped Rs 500 to Rs 39,950 per kg and weekly-based delivery by Rs 300 to Rs 39,870 per kg. Silver coins too plunged by Rs 1,000 to Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces.