Gold down by Rs 240 on scrap selling, weak global cues

Gold prices tumbled by Rs 240 to Rs 19,530 per ten gram on emergence of scrap gold jewellery selling by retailers at existing higher levels amid weak global trend.

Silver prices, too, kept up with the general weakening trend, and  plunged by Rs 550 to Rs 35,550 per kg, as stockists off-loaded part of their holding and bulk consumers refrained from buying at higher levels.

Trade analysts said retail customers indulged in selling scrap gold jewellery at attractive higher levels and pulled down the metal prices. 

They said buying activity was almost drying up, as stockists were waiting for more decline in the precious metal prices after its record fall in the overseas market.

Gold prices in London fell by $9.28 to $1,316.40 an ounce, its lowest level in the last two weeks.

On the domestic front, gold of 99.9 and 99.5 per cent purity dropped by Rs 240 each to Rs 19,530 and Rs 19,430 per ten gram respectively. Sovereign also fell by Rs 100 to Rs 15,800 per piece of eight gram.

Silver ready plunged by Rs 550 to Rs 35,550 per kg and weekly-based delivery by Rs 555 to Rs 35,100 per kg on reduced offtake by speculators. 

Price of silver coins fell by Rs 100 to Rs 35,900 for buying and Rs 36,000 for selling of 100 pieces.