Gold falls Rs 450 on weak global cues, tepid demand

Gold prices tumbled by Rs 450 to Rs 34,200 per 10 grams at the bullion market Thursday, tracking weak global cues amid fall in demand from local jewellers, according to All India Sarafa Association.

Silver followed suit and dropped by Rs 425 to Rs 41,050 per kg owing to poor offtake by industrial units and coin makers.

Traders said sentiments weakened on the back of a subdued global trend where gold fell after dollar rose as investors grew cautious about US trade talks with China.

Globally, gold prices fell 0.10 per cent per cent to USD 1,319.10 an ounce, while silver held steady at USD 15.80 an ounce in New York Thursday.

Besides, considerable fall in demand from local jewellers and retailers at the domestic spot market too fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 purities slumped by Rs 450 each to Rs 34,200 and Rs 34,030 per 10 grams, respectively.

Sovereign gold, however, remained unaltered at Rs 26,000 per piece of 8 grams.

In step with gold, silver ready plunged by Rs 425 to Rs 41,050 per kg and weekly-based delivery by Rs 262 to Rs 39,868 per kg.

Silver coins also dropped by Rs 1,000 to Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces.