Gold prices tumbled for the second straight day on Saturday by losing Rs 460 to Rs 30,200 per ten grams in the national capital due to sustained selling by stockists on fall in demand amid a weak global trend.
Silver also dropped for the fourth straight session and lost Rs 880 to Rs 46,890 per kg on poor offtake by industrial units and coin makers.
Traders said sustained selling by stockists due to fall in demand following ending of “Navratri” festival mainly pulled down gold and silver prices.
Weak global trend, where gold tumbled to a three-month low on speculation that US lawmakers will reach an agreement to increase the nation’s debt limit, curbing demand for bullion as a store of value, also dampened the sentiment, they said.
Gold in New York, which normally set price trend on the domestic front, fell 2.2 per cent to $ 1,268.20 an ounce, the lowest since July 10. Silver also declined 2.9 per cent to $ 21.25 an ounce, the biggest drop since September 20.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled further by Rs 460 each to Rs 30,200 and Rs 30,000 per ten grams, respectively.
It had lost Rs 340 on Friday. Sovereign, however, held steady at Rs 25,000 per piece of eight gram in limited deals.
In line with a general weak trend, silver ready plunged further by Rs 880 to Rs 46,890 per kg and weekly-based delivery by Rs 810 to Rs 47,190 per kg. The white metal had lost Rs 2,180 in the previous three sessions.
Silver coins also dropped by Rs 1,000 to Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.