Gold slumps on tepid demand, weak overseas trend

New Delhi: Gold prices dipped by Rs 20 to Rs 29,430 per 10 gram at the bullion market on Thursday on weak leads from global market and sluggish demand from local jewellers.

Silver followed suit and lost Rs 480 to Rs 38,700 per kg due to reduced offtake by industrial units and coin makers.

Traders said besides weak trend overseas, tepid demand from local jewellers and retailers at domestic spot market, mainly dampened the sentiment.

Globally, gold prices fell 0.43 per cent to USD 1,260.80 an ounce and silver by 0.85 per cent to USD 16.41 an ounce in Singapore.

Besides, an appreciating rupee at a fresh two-year high of 63.56 (intra-day) against the dollar at the forex market, too weighed on the prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity weakened by Rs 20 each at Rs 29,430 and Rs 29,280 per 10 gram, respectively.

The precious metal had lost Rs 200 in last two days. Sovereign, however, remained unaltered at Rs 24,500 per piece of eight gram.

Following gold, silver ready dropped by Rs 480 to Rs 38,700 per kg and weekly-based delivery slipped by Rs 525 to Rs 37,750 per kg.

On the other hand, silver coins maintained a steady trend at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.