Gold tumbles to two-week low on global cues, muted demand

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New Delhi | Published: December 18, 2015 3:46:28 PM

Tracking a weak overseas trend, gold prices plunged by Rs 265 to trade at over two-week low of Rs 25,375 per 10 grams at the bullion market today.

goldTracking a weak overseas trend, gold prices plunged by Rs 265 to trade at over two-week low of Rs 25,375 per 10 grams at the bullion market today. (Photo: AP)

Tracking a weak overseas trend, gold prices plunged by Rs 265 to trade at over two-week low of Rs 25,375 per 10 grams at the bullion market today.

Silver followed suit and dropped by 600 to Rs 33,250 per kg.

Traders said sentiment turned bearish in step with weak global trends as gold posted its biggest loss since March after the Federal Reserve’s first interest rate increase in almost a decade strengthened the dollar, curbing the appeal of precious metals.

Globally, gold fell by 2 per cent to USD 1,050.60 an ounce, its biggest decline since March 6 and silver by 3.42 per cent to USD 13.69 an ounce in New York in yesterday’s trade.

Subdued demand from jewellers and retailers who deferred their buying plans on expectations of further fall in coming days also dampened sentiment, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity slumped by Rs 265 each to Rs 25,375 and Rs 25,225 per 10 grams respectively, a level last seen on December 3. It had gained Rs 40 yesterday.

Sovereign declined by Rs 100 to Rs 22,100 per piece of eight grams.

Following gold, silver ready plummeted by Rs 600 to Rs 33,250 per kg and weekly-based delivery slumped by Rs 720 to Rs 33,280 per kg.

On the other hand, silver coins were unaltered at Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.

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