Gold prices fall by Rs 250 after demand softens
Gold prices declined another Rs 250 to Rs 30,450 per 10 grams today reflecting sluggish global trend and hit by a considerable fall in domestic demand.
Silver followed suit and went down further by Rs 400 to Rs 40,400 per kg on poor offtake by industrial units and coin makers.
Traders said, sentiment was downbeat, largely in keeping with a weak global trend as the dollar surged against a basket of currencies that eroded the metals’ appeal as safe-haven assets coupled with fall in demand from local jewellers and retailers at the domestic spot markets.
Globally, gold fell 1.35 per cent to USD 1,276 an ounce and silver by 2.43 per cent to USD to 16.86 an ounce in New York in yesterday’s trade.
Diversion of funds towards the soaring equity markets also weighed on the prices, they said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 250 each to Rs 30,450 and Rs 30,300 per ten grams, respectively. It had lost Rs 75 yesterday.
Sovereign, however, remained unaltered at Rs 24,700 per piece of eight gram in limited deals.
In sync with gold, silver ready dropped further by Rs 400 to Rs 40,400 per kg and weekly-based delivery by Rs 505 to Rs 39,395 per kg.
Silver coins, however, maintained a steady trend at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.