Gold slumps Rs 320 on muted demand, weak trend overseas

Continuing its downward trend, gold prices Tuesday slumped Rs 320 to Rs 33,450 per 10 grams at the bullion market here on account of tepid demand from local jewellers and weak global market.

Following gold, silver declined Rs 450 to Rs 39,500 per kg due to reduced offtake by industrial units and coin makers.

Traders attributed the fall in the gold prices to subdued demand from local jewellers due to ending of wedding season and weak trend overseas.

Besides, shifting of funds to the equity market put pressure on yellow metal, they added.

Globally, spot gold traded lower at USD 1,285.20 an ounce and, similarly, silver was down at USD 15.14 an ounce in New York.

On Monday, the Delhi bullion market remained closed on the account of Mahashivratri.

In the national capital, gold of 99.9 per cent and 99.5 per cent purities dropped Rs 320 to Rs 33,450 and Rs 300 to Rs 33,300 per 10 grams, respectively.

Gold prices had fallen by Rs 880 in the previous three days.

Sovereign gold, too, witnessed a decrease of Rs 100 to Rs 26,400 per piece of eight grams.

Silver ready fell Rs 450 to Rs 39,500 per kg, while weekly-based delivery declined Rs 185 to Rs 38,115 per kg.

Silver coins also dropped by Rs 1,000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.