Gold dips below Rs 26,000; hits over 3 month low on global cues

Tracking a weak trend overseas and slackened demand from jewellers in domestic markets, gold prices slipped below the Rs 26,000 mark by plunging Rs 300 today to 3-month low of Rs 25,950 per 10 gram.

Silver also slumped by Rs 500 to Rs 34,400 per kg on reduced offtake by industrial users and coin makers.

Sentiments dampened after the precious metal traded near 5-year low in global market as investors sold bullion-backed funds on expectations that the US Federal Reserve will hike interest rate this year, bullion traders said.

Besides, slowdown in buying by jewellers and retailers following end of Diwali festival too weighed on sentiments, they said.

Globally, gold retreated 0.4% to $1,080.40 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5% purity tumbled by Rs 300 each to Rs 25,950 and Rs 25,800 per 10 grams respectively, a level last seen on August 11. The precious metal had gained Rs 140 in the previous three sessions.

Sovereign also declined by Rs 100 to Rs 22,200 per piece of 8 grams.

In line with overall trend, silver ready dropped by Rs 500 to Rs 34,400 per kg and weekly-based delivery by Rs 345 to Rs 33,925 per kg.

Silver coins also plummeted by Rs 1,000 to Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.