Gold, silver tumbles on global cues, sluggish demand

While gold dropped by Rs 120 to Rs 29,620 per 10 gm, silver lost Rs 550 to Rs 55,700 per kg on reduced offtake by retailers and industrial units at prevailing higher levels.

Trading sentiment turned bearish after gold and silver dropped in global markets after the election of Francois Hollande as France's president weakened the euro, trimming demand for alternative assets.

Gold in global markets, which normally set price trend on the domestic front, fell 0.5 per cent to USD 1,634.38 an ounce and silver by 1.2 per cent to USD 29.99 an ounce in Singapore.

Also, sluggish demand among retail customers at prevailing higher levels and off marriage season further dampened the trading sentiment.

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 120 each to Rs 29,620 and Rs 29,480 per ten grams respectively, while sovereign shed Rs 50 to Rs 23,800 per piece of eight gram.

Similarly, silver ready dropped by Rs 550 to Rs 55,700 per kg and weekly-based delivery by Rs 465 to Rs 56,135 per kg. However, silver coins remained unchanged at Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.