Gold slumps by Rs 300 on weak global cues, low demand

Gold prices dived by Rs 300 to Rs 31,600 per ten grams, extending their slide for the third straight day at the bullion market today, tracking a weak trend overseas amid fall in demand from local jewellers.

Silver also fell further by Rs 100 to Rs 40,500 per kg due to reduced offtake by industrial units and coin makers.

Traders said sentiment remained downbeat on the back of a weak global trend where gold fell after stronger than forecast US payrolls data boosted expectations that the Federal Reserve may press ahead with another US interest rate hike this month, lifting the dollar.

Globally, gold fell 0.37 per cent to USD 1,293.10 an ounce and silver 0.06 per cent to USD 16.38 an ounce in New York in yesterday's trade.

Besides, fading demand from local jewellers and retailers at domestic spot market too fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped further by Rs 300 each to Rs 31,600 and Rs 31,450 per ten grams, respectively. The precious metal had lost Rs 190 in last two days.

Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams.

In sync with gold, silver ready declined by Rs 100 to Rs 40,500 per kg and weekly-based delivery by Rs 145 to Rs 39,535 per kg.

On the other hand, silver coins continued to be traded at the previous level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.