Gold price drops below Rs 31,000 over weak global cues

Gold prices fell by Rs 300 per ten grams and silver by Rs 450 per kg at the bullion market

After five sessions of gains, gold prices on Monday fell by Rs 300 per ten grams to crack below the 31,000-level and silver by Rs 450 to Rs 43,600 per kg at the bullion market on easing demand from jewellers coupled with weak global cues.

Sentiment took a hit after gold tumbled overseas amid positive developments on the US election front, strengthening the dollar and diminishing appeal of the precious metal as a safe-haven, bullion traders said.

The FBI has given a clean chit to Hillary Clinton, saying she should not face criminal charges after a review of new emails, an 11th-hour respite for the Democratic presidential candidate that could be a game changer in the tight race for the White House.

Globally, gold fell 1.29% to $1,287.20 an ounce and silver by 1.17% to $18.19 an ounce in Singapore.

Besides, fall in demand from jewellers and retailers at prevailing levels at domestic spot market fuelled the downtrend in the precious metals prices.

In the national capital, gold of 99.9% and 99.5% purity slumped by Rs 300 each to Rs 30,850 and Rs 30,700 per 10 grams, respectively. The precious metal had gained Rs 500 in the previous five days.

Sovereign also traded lower by Rs 100 to Rs 24,500 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 450 to Rs 43,600 per kg and weekly-based delivery by Rs 395 to Rs 43,000 per kg.

Silver coins, however, held steady at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.