Gold plunges Rs 300 on weak global cues, muted demand

Gold prices plunged Rs 300 to Rs 34,170 per 10 gram in the national capital Wednesday due to tepid demand from local jewellers and weak trend overseas, according to the All India Sarafa Association.

Silver also followed suit and plummeted by Rs 500 to Rs 38,700 per kg due to reduced offtake by industrial units and coin makers.

Traders said gold prices fell on weak demand from local jewellers and subdued global trend.

Globally, spot gold was trading lower at USD 1,408.57 an ounce after hovering near six-year highs on Tuesday, while silver was down at USD 15.22 an ounce in New York.

"Bullion prices traded lower with international spot gold prices falling below USD 1,410 with recovery in dollar index post Fed officials comments. The less aggressive signal for rate cut prompted profit booking in gold prices from six-years highs," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

He said gold prices declined further on Wednesday noon after a US government official said US-China trade deal is 90 per cent done.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plummeted Rs 300 each to Rs 34,170 and Rs 34,000 per 10 gram, respectively.

Sovereign gold also declined by Rs 100 to Rs 26,800 per eight gram.

Silver ready prices fell by Rs 500 to Rs 38,700 kg, while weekly-based delivery dropped Rs 399 to Rs 37,734 per kg.

On the other hand, silver coins held flat at Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.