Gold falls Rs 190 on global cues, muted demand

Gold prices went down by Rs 190 to Rs 30,740 per 10 grams at the bullion market today, tracking a weak trend overseas amid fall in demand from the local jewellers.

Silver followed suit and slipped by Rs 230 to Rs 39,200 per kg due to reduced offtake by industrial units and coin makers.

Traders said, a weak overseas trend on stronger dollar and in response to easing trade tensions after the United States agreed to refrain from imposing tariffs on cars from the European Union, led to the slide in gold prices.

Globally, gold fell 0.73 per cent to USD 1,222.40 an ounce and silver by 1.48 per cent to USD 15.35 an ounce in New York in yesterday's trade.

Besides, a decline in demand from local jewellers and retailers at the domestic spot market and diversion of funds towards the record-breaking domestic equity markets too influenced the sentiment to some extent, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 190 each to Rs 30,740 and Rs 30,590 per 10 grams, respectively. The precious metal had gained Rs 90 in the last two days.

Sovereign, however, remained flat at Rs 24,700 per piece of eight grams.

In step with gold, silver ready fell by Rs 230 to Rs 39,200 per kg and weekly-based delivery by Rs 340 to Rs 38,195 per kg.

Silver coins, however, remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.