Gold, silver log out of 2016 on muted note, post annual gains

New Delhi: Halting its 4-day upmove, gold today plunged Rs 200 to Rs 28,300 per 10 grams on the last trading day of 2016, in keeping with a subdued trend overseas amid fall in demand from jewellers. Silver, too, dropped Rs 500 to Rs 39,400 per kg due to lower offtake by industrial units and coin makers. The precious metal got back some of its sheen in 2016, more so after the Brexit shock and volatility due to Chinese market rout.

Overall, global growth worries and geo-political risks amid collapsing oil prices have come as a “perfect blend” for gold, which added to its safe haven appeal. Gold hit a high of Rs 31,750 per 10 grams on November 9 and a low of Rs 25,390 on January 1 in 2016. For the year, the yellow metal registered a notable gain of Rs 2,910, or 11.46 per cent, in its prices while silver climbed Rs 6,100, or over 19 per cent. Globally, it zoomed to USD 1,372.60 an ounce in August 2016 from USD 1,060.20 in 2015 before settling at USD 1,150.90, a growth of over 9 per cent.

Also, silver skyrocketed 50 per cent to hit a high of USD 20.70 an ounce before pulling back in early November to USD 15.70 and ended at USD 15.88, a rise of USD 1.92, or about 14 per cent. Marketmen said that apart from a weak global trend, fall in demand from jewellers and retailers at the domestic spot market mainly pushed down the prices of the precious metals today. Overseas, gold fell 0.59 per cent to USD 1,150.90 an ounce and silver by 1.49 per cent to USD 15.88 an ounce in New York yesterday. In Delhi, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 200 each to Rs 28,300 and Rs 28,150 per 10 grams, respectively.

The precious metal had gained Rs 950 in the previous four days. Sovereign, however, remained steady at Rs 24,000 per piece of eight grams in limited deals. Tracking gold, silver ready plunged by Rs 500 to Rs 39,400 per kg and weekly-based delivery cracked below the Rs 39,000 mark by falling Rs 980 to Rs 38,700 per kg. Silver coins, however, continued to trade at the previous level of Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.