Gold hits over 3-week low on sluggish demand, global cues

Hit by a domestic demand slump and weakening global trend, gold prices today plunged to hit an over three-week low of Rs 26,810 per ten grams by losing another Rs 180 at the bullion market.
Silver also remained under selling pressure and lost Rs 315 at Rs 35,600 per kg.
Traders said weak global cues amid the US Fed indicating that it may go on to raise interest rate this year eroded demand for the precious metals.
Globally, gold which normally determines price trend on the domestic front, lost 0.7 per cent to USD 1,137.73 an ounce and silver fell 1.1 per cent to USD 14.94 an ounce in Singapore.

Besides fall in demand from jewellers and retailers following beginning of "Shraddhas", an inauspicious fortnight in Hindu mythology for making fresh purchases, kept pressure on precious metals, they said.
In the national capital, gold of 99.9 and 99.5 per cent fell further by Rs 180 each to Rs 26,810 and Rs 26,660 per ten grams respectively, a level last seen on September 3.

The precious metal had lost Rs 260 in Saturday's trade.
Sovereign, however, remained steady at Rs 22,400 per piece of eight gram.
Tracking gold, silver ready dropped by Rs 315 to Rs 35,600 per kg and weekly-based delivery by Rs 210 to Rs 35,880 per kg.

Silver coins also tumbled by Rs 1,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces on poor demand.