Gold tumbles Rs 320, silver hit five-year low on global cues

Bullion merchants said a weak global trend has cut demand for the precious metals, leading to fall in gold and silver prices

Gold prices today fell by Rs 320 to trade at Rs 25,050 per 10 gm and silver cracked the Rs 34,000-level to trade at about five-year low at the bullion market here due to a weak trend in global market and slackened demand from jewellers and retailers.

Bullion merchants said a weak global trend where gold extended losses to five-year low as the US economy data that showed improvement backed the case for higher interest rates, has cut demand for the precious metals as a safe-haven, leading to fall in gold and silver prices.

Globally, gold in Singapore, which normally sets price trend on the domestic front, dropped by 1.2 per cent to USD 1,077.40 an ounce, the lowest level since February 11, 2010.

Silver fell by 1.1 per cent to USD 14.50 an ounce, its lowest level since December last year.

In the national capital, gold of 99.9 and 99.5 per cent purity recorded a steep fall of Rs 320 each to Rs 25,050 and Rs 24,900 per 10 grams respectively.

In futures trading at the Multi Commodity Exchange, gold was trading Rs 193 or 0.77 per cent to Rs 24,758 per 10 gm (intra-day).

Yesterday, the precious metal has rebounded by Rs 120 largely in tune with global trend and low-level buying support from jewellers.

Sovereign too declined by Rs 300 at Rs 22,200 per piece of eight gm.

Tracking gold, silver ready slipped below the Rs 34,000- mark by diving Rs 380 to Rs 33,950 per kg, its weakest closing since September 29, 2010 when it closed at Rs 33,750.

Silver weekly-based delivery by Rs 355 to Rs 33,745 per kg.

Silver coins nosedived by Rs 1,000 to Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.