Gold slumps Rs 365 on weak global cues, muted demand

Gold tumbled by Rs 365 to Rs 30,435 per 10 gram today on the back of subdued global cues amid slump in demand from local jewellers.

Silver followed suit and declined by Rs 50 to Rs 39,000 per kg owing to reduced offtake by industrial units and coin makers.

Traders said sentiment took a hit owing to a weak global trend, as the dollar strengthened after the US Federal Reserve kept interest rates steady as expected.

Globally, gold fell 0.65 per cent to USD 1,215.50 an ounce and silver by 0.94 per cent to USD 15.35 an ounce in New York in yesterday's trade.

In addition, 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 365 each to Rs 30,435 and Rs 30,285 per 10 gram, respectively. The precious metal had gained Rs 150 yesterday.

Sovereign however held steady at Rs 24,600 per piece of eight gram.

Following gold, silver ready declined by Rs 50 to Rs 39,000 per kg and weekly-based delivery by Rs 240 to Rs 37,940 per kg.

Silver coins however remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.