Gold plunges by Rs 600 to below Rs 31,000 level on weak global cues

Gold prices on Thursday tumbled by Rs 600 to hit almost three-week low of Rs 30,950 per 10 grams in the local market here today due to weak global advices.

Fall in demand from local jewellers too kept pressure on the precious metal.

Silver cracked below the Rs 39,000-mark by falling Rs 450 to Rs 38,900 per kg on poor offtake by industrial units and coin makers.

Traders said sentiment was downbeat as the precious metal fell to four-week lows on a firmer dollar amid expectations of more US interest rate hikes, diminishing appeal of gold as a safe haven bet.

Gold prices fell 0.61 per cent to $1,310.10 an ounce, and silver by 0.37 per cent to $16.28 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell steeply by Rs 600 each to Rs 30,950 and Rs 30,800 per 10 grams, respectively. Gold of 99.9 per cent had at Rs 30,950 on January 18.

Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams.

Following gold, silver ready tumbled by Rs 450 to Rs 38,900 per kg and weekly-based delivery by Rs 820 to Rs 37,735 per kg.

Silver coins, on the other side, were unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces in scattered deals.