Gold slides on weak global cues

Gold prices fell by Rs 250 to Rs 17,110 per ten gram in the bullion market today as investors resorted to heavy selling amid a weakening global trend.

The precious metal slid to 1,108.30 dollar from 1,130 dollar an ounce in New York as firming US dollar reduced demand for the metal as an alternate investment.

The dollar gained against a basket of major currencies from a report that showed US retail sales increased more than the market expectations.

The falling trend in gold prices was mirrored by the other precious metal silver too.

Silver plunged by Rs 450 to Rs 27,450 per kg.

Marketmen said retail customers remained on the sidelines and postponed their decision to purchase jewellery at the current higher level, further dampening the market sentiment.

Standard gold and ornaments registered a steep fall of Rs 250 each to Rs 17,110 and Rs 16,960 per ten gram respectively while sovereign remained steady at Rs 13,900 per piece of eight gram.

A similar weakening trend was extended to silver, with silver ready plunging by Rs 450 to Rs 27,450 per kg and weekly-based delivery by Rs 335 to Rs 27,050 per kg.

In line with a general trend, silver coins also lost Rs 100 at Rs 33,200 for buying and Rs 33,300 for selling of 100 pieces.