Markets

Gold prices plunge to end on three-month low

Gold bars are displayed at bullion house in Mumbai in this December 3, 2009 file photograph. Gold hit an all-time high on August 8, 2011 and investors sold off  other commodities from oil to grains, fleeing from riskier assets after the U.S. loss of its prized AAA credit rating stoked fears about economic growth.  Gold broke through the $1,700 per ounce mark for the first time, extending its bull run as a safe haven asset amid worries for global growth after agency Standard & Poor's (S&P) cut its rating for U.S. debt late on Friday (August 5, 2011).     REUTERS/Arko Datta (INDIA - Tags: BUSINESS)

Gold bars are displayed at bullion house in Mumbai in this December 3, 2009 file photograph. Gold hit an all-time high on August 8, 2011 and investors sold off other commodities from oil to grains, fleeing from riskier assets after the U.S. loss of its prized AAA credit rating stoked fears about economic growth. Gold broke through the $1,700 per ounce mark for the first time, extending its bull run as a safe haven asset amid worries for global growth after agency Standard & Poor's (S&P) cut its rating for U.S. debt late on Friday (August 5, 2011). REUTERS/Arko Datta (INDIA - Tags: BUSINESS)

Extending losses for the sixth straight week at the bullion, gold prices plunged to hit a three-month low of Rs. 26,540 per ten grams. This is owing to slackened demand from jewellers and retailers amid a weakening global trend.

Silver also ended lower due to reduced offtake by industrial units and coin makers.

Trading activity was restricted to four day as markets remained closed on Thursday and Friday on account of Holi.

Bullion merchants said apart from easing demand from jewellers and retailers, a weakening global trend cut demand for the precious metals, as the US economy added more jobs in February than forecast.

Gold in global markets, which normally set price trend on the domestic front, fell to USD 1,168.70 an ounce and silver to USD 15.93 an ounce in New York during the week.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week on higher note at Rs. 27,300 and Rs. 27,100 per 10 grams on the back of buying by jewellers and retail customers supported by wedding season.

However, it turned weak largely in line with a weakening global trend and plunged to close at three-month low at Rs. 26,540 and Rs. 26,340 per ten gram respectively, showing a sharp fall of Rs. 580 each.

Sovereign, which remained steady for the major part of week in restricted deals, succumbed to selling at the fag end and declined by Rs. 100 to Rs, 23,600 per piece of eight gram.

Silver ready ended lower by Rs. 900 to Rs. 36,300 per kg and weekly-based delivery by Rs. 555 to Rs. 36,000 per kg.

Silver coins also plummeted by Rs. 2,000 to Rs. 57,000 for buying and Rs. 58,000 for selling of 100 pieces.


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Printable version | Jul 3, 2022 2:54:50 pm | https://www.thehindu.com/business/markets/gold-prices-plunge-for-the-sixth-straight-week-end-on-threemonth-low/article6969441.ece