Gold price slumps to Rs 32,020; silver falls by Rs 250 per kg

Mumbai-India (May 16)  Gold prices dived by Rs 430 to Rs 32,020 per 10 gram at the bullion market today, due to a weak trend overseas amid fall in demand from local jewellers. Silver followed suit and lost Rs 250 to Rs 40,650 per kg due to reduced offtake by industrial units and coin makers.

Gold fell below the $1,300 an ounce level to trade at this year’s lowest level of $1,290.30 an ounce in New York yesterday on surging US bond yields and a stronger dollar. Silver too fell 1.52 per cent to $16.24 an ounce.

Besides, fall in demand from local jewellers and retailers at current levels too weighed on the prices, traders said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 430 each to Rs 32,020 and Rs 31,870 per ten gram, respectively. It had gained Rs 165 in yesterday’s trade. Sovereign however remained unaltered at Rs 24,800 per piece of eight gram.

In line with overall trend, silver ready fell by Rs 250 to Rs 40,650 per kg and weekly-based delivery by Rs 190 to Rs 39,850 per kg. On the other hand, silver coins were unaltered at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

BusinessLine