Gold prices tumble a near 3-month low on weak global cues

Gold prices in the national capital today tumbled the lowest in near three months after it lost Rs 380 to trade at Rs 18,000 per ten gram, on bearish sentiment driven by a decline in global markets.

The precious metal suffered heavy losses after gold in New York tumbled by $25.10 to 1,158 an ounce last evening, pushing its price in domestic markets to a low, last evident on May 6.

With the weakness in the bullion market, silver also dropped by Rs 680 to Rs 28,700 per kg on poor offtake by industrial units and coins makers. Sluggish domestic demand and investors shifting their funds to other assets for quick gains further fuelled the downtrend.

On monthly basis, the slide in gold price that follows the Rs 410 decline in its price on July 2, shows its demand as a safe haven for investors is eroding after the Reserve Bank of India forecast a better economic growth early this week.

The gold of 99.9 per cent and gold of 99.5 per cent purity dropped by Rs 380 each to Rs 18,000 and Rs 17,900 per ten grams respectively. Sovereign fell by Rs 100 to Rs 14,500 per piece of eight grams.

Silver ready plunged by Rs 680 to Rs 28,700 per kg and weekly-based delivery by Rs 665 to Rs 28,480 per kg. Silver coins also plummeted by Rs 400 to Rs 33,500 for buying and Rs 33,600 for selling of 100 pieces.