Gold hits over 3-month low on global cues, muted demand

Gold prices plunged by Rs 145 to trade at over three-month low of Rs 28,720 per ten grams at the bullion market on Friday, tracking a weak trend overseas along with sluggish demand from jewellers at spot market.

However, silver recovered by Rs 200 to Rs 38,800 per kilogram on scattered buying support from industrial units.

Bullion traders said apart from a weak trend overseas, muted demand from jewellers and retailers at domestic spot market mainly weighed on the prices.

Globally, gold fell 0.19% to $1,210.40 an ounce in New York in Thursday's trade.

In the national capital, gold of 99.9 and 99.5% purity slipped by Rs 145 each to Rs 28,720 and Rs 28,570 per ten grams, respectively, a level last seen on February 18, 2016. The precious metals had lost Rs 135 on Thursday.

Sovereign, however, held steady at Rs 22,800 per piece of eight grams.

On the other hand, silver ready recovered by Rs 200 to Rs 38,800 per kg and weekly-based delivery by Rs 95 to Rs 38,590 per kg.

Silver coins, however, continued to trade at previous levels of Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.