Gold tumbles by Rs 440 to over three-month low on global cues

Gold is trading at Rs 27,010 per 10 grams

New Delhi: Gold prices on Friday tumbled by Rs 440 to hit an over three-month low of Rs 27,010 per 10 grams in the national capital on heavy selling by stockists triggered by a weakening global trend.

Besides, sluggish demand and subdued global cues also weighed on the precious metal's price. Silver also fell for the third day and shed another Rs 100 to Rs 40,900 per kg on reduced offtake by industrial units and coin makers. Sentiment turned weak largely in tandem with a weak trend overseas where gold fell to an eight-month low after the Federal Reserve raised its interest-rate forecasts this week, strengthening the dollar, reduced the metal demand, traders said.

Gold in London, which normally sets price trend on the domestic front, fell 0.2 per cent to $1,222.71 an ounce and silver was down 0.1 per cent at $18.51 an ounce. Sluggish domestic demand in view of the ongoing 'sharadh', considered to be an inauspicious fortnight for making new purchases, also dampened sentiment, they said.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 440 each to Rs 27,010 and Rs. 26,810 per 10 grams respectively, a level last seen on June 9. Sovereign, however, moved in a tight range on lack of buying support and settled at last level of Rs. 24,400 per piece of 8 grams. Silver ready traded lower by Rs 100 to Rs 40,900 per kg and weekly-based delivery by Rs 260 to Rs 40,810 per kg. The white metal had lost Rs. 600 in the previous two sessions. Silver coins dropped by Rs. 1,000 to Rs. 70,000 for buying and Rs. 71,000 for selling of 100 pieces.

( Source : PTI )
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