Gold plunges Rs 500 on global cues, muted demand

Globally, gold price fell 0.03% to $1,331 an ounce in Singapore

Gold recorded a steep fall of Rs 500 in its prices to close at Rs 30,350 per 10 grams at the bullion market on Wednesday, tracking a weak trend overseas amid tepid demand from local jewellers.

However, silver recovered by Rs 200 to Rs 41,850 per kg on scattered enquiries from industrial units and coin makers.

Traders said, a weak trend overseas as concerns over North Korea and the US hurricanes faded, fuelling demand for riskier assets lifting global stocks to record highs, kept pressure on the precious metal prices here.

Besides, fading demand from local jewellers as well as retailers attributed to the fall in prices, they added.

Globally, gold price fell 0.03 per cent to $1,331 an ounce in Singapore today.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity tumbled by Rs 500 each to Rs 30,350 and Rs 30,200 per ten grams, respectively. It had lost Rs 150 yesterday.

Sovereign, however, remained unaltered at Rs 24,700 per piece of eight grams.

On the other hand, silver ready rebounded by Rs 200 to Rs 41,850 per kg and weekly-based delivery by Rs 270 to Rs 41,300 per kg.

Silver coins, however, continued to be traded at previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces in scattered deals.