Gold, silver plunge on sluggish demand, weak global cues

Gold dropped by Rs 225 to Rs 30,550 per ten grams in the national capital today on sluggish demand at prevailing higher levels amid a weak global trend.
On the other hand, silver plunged Rs 520 to Rs 47,050 per kg on reduced offtake by jewellers and industrial units.
Traders said sluggish demand at prevailing higher levels following recent upsurge put pressure on both gold and silver prices.
Weak global trend, where gold declined nearly to its lowest level in three months, further dampened the sentiment, they added.
Gold in Singapore, which normally set price trend on the domestic front, lost 0.5 per cent to USD 1,266.40 an ounce and silver by 0.3 per cent to USD 21.20 an ounce.

In addition, weak trend at futures market, where speculators trimmed their positions on fears of more correction in the prices, also influenced the sentiment.

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 225 each to Rs 30,550 and Rs 30,350 per ten grams, respectively. It had gained Rs 575 yesterday.
Sovereign, however, remained steady at Rs 25,100 per piece of eight gram in limited deals.
In line with a general weak trend, silver ready dropped by Rs 520 to Rs 47,050 per kg and weekly-based delivery by the same margin to Rs 46,750 per kg. The white metal had gained Rs 680 in the previous session.

Silver coins also tumbled by Rs 1,000 to Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.