Gold price plunges by Rs 350 on lackluster demand, silver slides below 40K

Gold lost Rs 350 to Rs 31,800 per ten gram on Friday, aligning with a sluggish overseas trend amid fall in local demand.

Silver too fell by Rs 250 to Rs 39,750 per kg due to reduced offtake by industrial units and coin makers.

According to traders, gold prices took a hit owing to fall in demand from local jewellers at the domestic spot market and a weak trend overseas.

Diversion of funds towards rising equity also weighed on the sentiment, they said.

Globally, gold softened by 1.37 per cent to USD 1,334.30 an ounce in New York on Thursday. Silver too shed 1.35 per cent to USD 16.43 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 350 each to Rs 31,800 and Rs 31,650 per ten gram, respectively. The precious metal had gained Rs 800 in the precious five days.

Sovereign also traded lower by Rs 100 at Rs 24,800 per piece of eight gram.

In sync with gold, silver ready shed Rs 250 to Rs 39,750 per kg and weekly-based delivery lost Rs 355 to Rs 38,645 per kg.

Silver coins too plummeted by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.