Gold plunges on weak global cues, muted demand

Snapping its three-session rising streak, gold recorded a steep fall of Rs 240 to Rs 32,390 per 10 grams at the bullion market here today on weak global cues amid easing demand from local jewellers.

Silver followed suit and declined by Rs 180 to Rs 41,300 per kg on reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers at prevailing higher levels at the domestic spot market mainly weighed on the precious metals' prices.

Globally, gold fell 0.28 per cent to USD 1,341.50 an ounce and silver by 0.75 per cent to USD 17.09 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity moved down by Rs 240 each to Rs 32,390 and Rs 32,240 per 10 grams, respectively. The precious metal had gained Rs 630 in the previous three days.

Sovereign, however, held steady at Rs 24,900 per piece of eight grams.

Following gold, silver ready fell by Rs 180 to Rs 41,300 per kg and weekly-based delivery shed Rs 130 to Rs 40,320 per kg.

Silver coins, however, remained unaltered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.