Gold price tumbles Rs. 220 on global cues; silver slumps

New Delhi-Inidia (Nov 7)  Gold prices today plunged by Rs. 220 to trade at Rs. 26,110 per 10 gram at the bullion market here due to a weak trend in global market and slackened demand from jewellers and retailers.

Silver also slumped by Rs. 500 to Rs. 35,300 per kg on reduced offtake by industrial users and coin makers.

Bullion traders said a weak trend overseas where gold dipped below $1,100 an ounce after strong US employment report for October, boosting the case for the Federal Reserve to raise interest rates, eroding demand for the precious metal and kept pressure on prices.

Besides, easing demand from jewellers and retailers at domestic markets too weighed on sentiments here, they said.

Globally, gold fell 1.29 per cent to close at $1,089.40 an ounce and silver lost 1.34 per cent to settle at $14.74 an ounce in New York in yesterday’s trade.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs. 220 each to Rs. 26,110 and Rs. 25,960 per 10 grams, respectively. The precious metal had gained Rs. 80 in yesterday’s trade.

Sovereign also declined by Rs. 50 to Rs. 22,250 per piece of eight grams.

Silver ready dropped by Rs. 500 to Rs. 35,300 per kg and weekly—based delivery by Rs. 560 to Rs. 34,900 per kg.

Source: TheHindu