Gold prices slump deeper on weak global cues, muted demand

Globally, gold fell by 0.19% to $1,213.30 an ounce

A weak global trend and tepid demand from local jewellers pulled gold prices down by another Rs 50 to Rs 29,500 per 10 grams at the bullion market on Wednesday.

The precious metal had lost Rs 550 in the last two days.

Silver also drifted lower by Rs 400 to Rs 42,100 per kg on reduced offtake by industrial units and coin makers.

Traders said that apart from a weak global trend, fall in demand from local jewellers and retailers at the domestic spot market following the end of wedding season mainly kept pressure on gold prices.

Globally, gold fell by 0.19 per cent to $1,213.30 an ounce and silver by 0.26 per cent to $17.43 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 50 each to Rs 29,500 and Rs 29,350 per 10 grams, respectively.

Sovereign traded lower by Rs 100 to Rs 24,400 per piece of eight grams.

Alongside gold, silver ready dropped by Rs 400 to Rs 42,100 per kg and weekly-based delivery went below the Rs 42,000-mark by falling Rs 450 to Rs 41,940 per kg.

Silver coins plunged by Rs 1,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.