Gold plunges Rs 265 on global cues, muted demand

Reversing two days of gains, gold prices declined by Rs 265 to Rs 28,400 per 10 grams at the bullion market today on weak trend overseas and fall in demand from local jewellers.
Silver also drifted lower by Rs 205 to Rs 38,200 per kg due to reduced offtake by industrial units and coin makers.
Traders said apart from a weak trend overseas, easing demand from local jewellers and retailers at prevailing levels at the domestic spot market pulled down gold prices.
Globally, gold fell by 0.19 per cent to USD 1,218.80 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 265 each to Rs 28,400 and Rs 28,250 per 10 grams, respectively. The precious metal had gained Rs 115 in the previous two days.
Sovereign, however, remained steady at Rs 24,300 per piece of eight grams.
Silver ready also fell by Rs 205 to Rs 38,200 per kg, while weekly-based delivery regained the Rs 38,000-mark by rising Rs 195 to Rs 38,100 per kg on speculative buying.
Silver coins, however, continued to be traded at the previous level of Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.