Gold drops Rs 275; dips below Rs 30k level after four months

Traders said stockists selling against fall in demand at prevailing higher levels pulled down gold prices

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Gold prices dipped below Rs 30,000 per ten grams level for the first time in over four months in the national capital today on stockists selling against fall in demand at prevailing higher levels.

Gold dropped Rs 275 to Rs 29,900 per ten grams, the level last seen on August 14.

However, silver added Rs 310 to Rs 44,000 per kg on increased offtake by industrial units and coin makers.

In Mumbai, gold of 99.9 and 99.5% purity traded lower at Rs 29,940 and Rs 29,800 per ten grams, respectively, while silver enquired at Rs 44,440 per kg.

Traders said stockists selling against fall in demand at prevailing higher levels mainly pulled down gold prices.

They said sentiment also turned bearish in the absence of any direction from overseas markets following closure for 'Christmas' and 'New Year' holidays.

In Delhi, gold of 99.9 and 99.5% purity tumbled by Rs 275 each to Rs 29,900 and Rs 29,700 per ten grams, respectively. It had gained Rs 125 yesterday. Sovereign held steady at Rs 25,100 per piece of eight grams.

On the other hand, silver ready strengthened by Rs 310 to Rs 44,000 per kg and weekly-based delivery by Rs 130 to Rs 44,120 per kg. The white metal had gained Rs 140 in last trade.

Silver coins, however, held steady at Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.