Gold tumbles on weak global cues, sluggish demand

Extending losses for the second straight day on Friday, gold prices fell by Rs. 340 to Rs. 30,700 per ten gram in the national capital today on heavy sell-off by stockists in tandem with a weak global trend.

Silver also plunged by Rs. 1,430 per kg on poor off-take by industrial units and coin makers.

Traders said stockists selling in line with a weak global trend amid concern the Federal Reserve will reduce its bond buying as U.S. lawmakers reached a budget agreement, reducing demand for precious metals as a safe haven.

Gold in New York, which normally sets price trend on the domestic front, fell 2.6 per cent to $1,224.90 an ounce and silver by 4.4 per cent to $19.45 an ounce.

Sluggish domestic demand at higher levels also dampened the sentiment to some extent, they said.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs. 340 each to Rs. 30,700 and Rs. 30,500 per ten gram, respectively. It had lost Rs. 110 on Thursday.

Sovereign declined by Rs. 100 to Rs. 25,200 per piece of eight grams.

In a similar fashion, silver ready plunged by Rs. 1,430 to Rs. 43,630 per kg and weekly-based delivery by Rs. 1,530 to Rs. 44,130 per kg. The white metal had gained Rs. 1,590 in the previous three sessions.

Silver coins also dropped by Rs. 2,000 to Rs. 83,000 for buying and Rs. 84,000 for selling of 100 pieces.

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Printable version | May 18, 2021 8:02:21 PM |

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