Gold plunges Rs 280 on weak global cues

Gold prices tumbled by Rs 280 per 10 grams at the bullion market here today, in line with a weak trend overseas and easing demand from local jewellers.

Silver followed suit by declining Rs 555 to Rs 39,105 per kg on poor offtake by industrial units.

Standard gold (99.5 purity) fell by Rs 280 to end at Rs 30,370 per 10 grams from Monday's level of Rs 30,650.

Pure gold (99.9 purity) also moved down by a similar margin to close at Rs 30,520 per 10 grams as compared to Rs 30,800 previously.

Silver (.999 fineness) dropped by Rs 555 per kg to finish at Rs 39,105 as against Rs 39,660.

Globally, gold headed lower, weighed down by a stronger dollar, and may re-test a seven-month low after a failed attempt to break higher in the previous session.

Spot gold was down 0.3 per cent at USD 1,253.60 an ounce at early trade.

In other precious metals, silver fell 0.5 per cent to USD 16.00 an ounce.