Gold plunges by Rs 100 on lacklustre demand

Gold slumped by Rs 100 to Rs 31,350 per ten gram at the bullion market today on fall in demand from local jewellers and retailers amid a weak trend overseas.
However, silver recovered by Rs 85 to Rs 39,385 per kg on scattered enquiries from industrial units and coin makers.
Marketmen said gold prices sank on muted demand from jewellers following the end of wedding season.
Besides, a weak global trend as minutes from the last US Federal Reserve indicated a hike in interest rates, strengthening the dollar and diminishing the appeal of gold as safe haven, aided the downtrend.

Globally, gold fell 0.23 per cent to USD 1,321 an ounce and silver by 0.58 per cent to USD 16.41 an ounce in Singapore.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 31,350 and Rs 31,200 per ten gram, respectively. The precious metal had lost Rs 350 in last two days.

Sovereign however remained unaltered at Rs 24,800 per piece of eight gram.
On the other hand, silver ready recovered by Rs 85 to Rs 39,385 per kg and weekly-based delivery by Rs 150 to Rs 38,340 per kg.

Silver coins continued to be traded at previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.