Gold melts on weak global cues, rising equity

Gold prices plunged by Rs 180 to Rs 15,260 per 10 grams in the national capital on heavy selling by stockists sparked by weakening trend on the overseas front and rising equities.

A similar weakness was noticed in silver, which fell by Rs 470 to Rs 21,700 per kg.

A steep rise in global equity markets eroded demand for the precious metal besides negligible buying in the physical markets due to off-marriage season.

The buying activity also fell as consumers were unmoved expecting more falls ahead. The metal in US markets tumbled to 916 dollar an ounce from 930 dollar last evening.

"Demand for gold is negligible and more co-related to the international trend," said All India Sarafa (Bullion) Bazar president Sheel Chand Jain.

He said little buying for the ongoing Navratra festival with scrap gold people are selling at such higher levels is weighing down gold.

Silver ready plunged by Rs 470 to Rs 21,700 per kg and weekly-based delivery by Rs 310 to Rs 21,980 per kg. Silver coins also fell by Rs 100 to Rs 28,200 for buying and Rs 28,300 for selling of 100 pieces.

Standard gold and ornaments dropped by Rs 180 each to Rs 15,260 and Rs 15,110 per 10 grams, respectively. Sovereign was down by Rs 12,200 per piece of eight gram.