Gold plunges Rs 225 on muted demand from jewellers, silver dips by Rs 450

Globally, gold rose 0.06% to $1,275.40 an ounce

Gold tumbled by Rs 225 to Rs 30,375 per ten gram at the bullion market on Thursday on muted demand from local jewellers even as the metal strengthened overseas.

Silver followed suit and dropped by Rs 450 to Rs 40,000 per kg due to reduced offtake by industrial units and coin makers.

Traders said fall in demand from local jewellers and retailers at the spot market mainly weighed on gold prices but a firm trend overseas capped the slide.

Globally, gold rose 0.06 per cent to USD 1,275.40 an ounce and silver by 0.24 per cent to USD 16.61 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity went down by Rs 225 each to Rs 30,375 and Rs 30,225 per ten gram, respectively. It had gained Rs 50 in yesterday's trade.

Sovereign however remained unaltered at Rs 24,700 per piece of eight gram in limited deals.

Following gold, silver ready slumped by Rs 450 to Rs 40,000 per kg and weekly-based delivery by Rs 460 to Rs 39,090 per kg.

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