Gold at four-month low on weak global cues, sluggish demand

Gold tumbled Rs 250 to trade at four-month low of Rs 26,000 per ten grams at the bullion market today, tracking a weak global trend amid subdued demand from jewellers…

Gold rate
Festive demand for gold in India got off to a tepid start, with local prices still at a heavy discount to the global benchmark, a bad sign for a period when buying is typically strong. (Reuters)

Gold tumbled Rs 250 to trade at four-month low of Rs 26,000 per ten grams at the bullion market today, tracking a weak global trend amid subdued demand from jewellers at domestic spot market.

Silver remained under selling pressure and fell by another Rs 250 to Rs 34,350 per kg on poor offtake by industrial units and coin makers.

Signs of improving US economic growth further diminished the metalu2019s appeal as a safe haven, easing demand from jewellers and retailers at domestic spot market and kept pressure on the prices.

Strengthening dollar too weighed on gold prices.

Gold in New York, which normally determines price trend on the domestic front, dropped 1 per cent to settle at USD 1,131.90 an ounce, after touching USD 1,129.60, the lowest since April 2010. Silver also slid 1 per cent to USD 14.83 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged Rs 250 each to Rs 26,000 and Rs 25,850 per ten grams, respectively, a level last seen on March 18.

Sovereign followed suit and traded lower by Rs 100 at Rs 22,900 per piece of eight grams.

Following gold, silver ready declined further by Rs 250 to Rs 34,350 per kg and weekly-based delivery by Rs 245 to Rs 34,200 per kg.

Silver coins plunged Rs 2,000 to Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.

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