Gold prices plunged by Rs 450 to trade at over three-year low of Rs 25,900 per 10 grams in the national capital today as the dollar’s strength dampened demand for the precious metal.
Besides, low demand from jewellers and retailers who preferred to defer their buying activity on hopes of further dip in prices and diversion of funds towards soaring equity markets, weighed on prices.
Silver followed suit and recorded a steep fall of Rs 900 to Rs 35,050 per kg on poor offtake by industrial units and coin makers.
Bullion traders said a weakening trend in global markets, as the dollar’s strength eroded demand, mainly put pressure on the precious metal.
Further, jewellers and retailers deferring their buying on expectations of further slide in gold prices, dampened sentiments.
Gold in Singapore, which normally sets price trend on the domestic front, fell 1.90 per cent to USD 1,146.34 an ounce, the lowest since April 2010 and silver plunged 3.4 per cent to USD 15.48 an ounce, the lowest since February 2010.
Meanwhile, gold in futures trading at the Multi Commodity Exchange (MCX) was trading lower by Rs 530, or over 2 per cent, at Rs 25,433 per 10 grams.
In Delhi, gold of 99.9 and 99.5 per cent purity dropped by Rs 450 each to trade at over three-year low of Rs 25,900 and Rs 25,700 per 10 grams, respectively.
Sovereign also showed some weakness and declined by Rs 100 to Rs 23,600 per piece of eight grams.
Silver ready dropped by Rs 900 to Rs 35,050 per kg and weekly-based delivery by Rs 1,210 to Rs 34,730 per kg.
Silver coins also tumbled by Rs 2,000 to Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces.