Gold slips to Rs 29,220 on weak global trend, muted demand

New Delhi: Gold prices tumbled by Rs 180 to Rs 29,220 per ten gram at the bullion market today, tracking a weak trend overseas amid muted demand from local jewellers.

Silver too lost sheen, shedding Rs 260 to Rs 38,840 per kg due to reduced offtake by industrial units and coin makers.

Marketmen said a weak trend overseas as equities gained and markets awaited clues about monetary policy from the US Federal Reserve, which began its two-day meeting yesterday, mainly dampened the sentiment here.

Besides, fading demand from local jewellers and retailers at existing levels too weighed on gold prices. The metal had gained Rs 250 in the past two days.

Globally, gold fell 0.34 per cent to USD 1,245.40 an ounce and silver by 0.88 per cent to USD 16.33 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 180 each to Rs 29,220 and Rs 29,070 per ten gram, respectively.

Sovereign, however, remained unaltered at Rs 24,400 per piece of eight gram in limited deals.

Following gold, silver ready fell by Rs 260 to Rs 38,840 per kg and weekly-based delivery by Rs 270 to Rs 37,910 per kg.

Silver coins, however, held steady at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.