Gold dips to Rs 27,700/10g on weak global cues

Gold prices dipped below the Rs 28,000 level for the first-time in 10 months, plunging Rs 400 to Rs 27,700 per 10g here on Wednesday on sustained selling by stockists and a weak global trend. In Mumbai, gold closed at Rs 27,350 per 10g.

Silver also fell Rs 400 to Rs 41,000 a kg on poor offtake by industrial units and coin makers.

Traders said persistent selling by stockists, tracking a weak trend overseas where gold fell to over 15-week low, as positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus, mainly pulled down gold prices.

Besides, sluggish demand from jewellers in the domestic market and signs of waning demand in China also influenced the sentiment, they said.

Gold in Singapore, which normally sets the price trend on the domestic front, fell 0.3 per cent to $1,260.97 an ounce, the lowest price since February 7. In Delhi, gold of 99.9 and 99.5 per cent purity plunged Rs 400 each to Rs 27,700 and Rs 27,500 per 10g, respectively, a level last seen on July 22 last year. It had lost Rs 220 in last two sessions. Sovereign lost Rs 200 at Rs 24,600 per piece of eight grammes.

In a similar fashion, silver ready dropped further by Rs 400 to Rs 41,000 a kg and weekly-based delivery Rs 420 to Rs 40,350 a kg. The white metal had lost Rs 300 in last three days.