Gold slumps Rs 290 on weak global cues, muted demand

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Gold prices tumbled by Rs 290 to Rs 30,340 per 10 grams at the bullion market today, driven by weak global cues amid fall in demand from local jewellers.

Silver followed suit and dropped by Rs 715 to Rs 38,000 per kg due to poor offtake by industrial units and coin makers.

Gold prices fell to their lowest in more than 19 months as sentiment turned negative due to weak global leads with the dollar holding steady near a recent peak, eroding the appeal of the precious metal as a safe haven, traders said.

Globally, gold fell 1.59 per cent to USD 1,174.70 an ounce and silver by 4.16 per cent to USD 14.41 an ounce in New York in yesterday's trade.

Besides, a considerable fall in demand from local jewellers and retailers at the domestic spot market fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 290 each to Rs 30,340 and Rs 30,190 per 10 grams, respectively.

Sovereign also declined by Rs 100 to Rs 24,500 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 715 to Rs 38,000 per kg and weekly-based delivery by Rs 1,035 to Rs 36,705 per kg.

Silver coins, too, plummeted by Rs 1,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.