Gold tumbles to one-month low on selling by stockists

Gold prices tumbled to one-month low by falling Rs.350 to Rs. 29,950 per 10 grams in the national capital on Wednesday on fresh selling by stockists against fall in demand at prevailing levels.

Silver, however, extended gains for the third day by adding Rs. 50 to Rs. 42,300 per kg on increased off take by industrial units.

Traders said fresh selling by stockists against slackened demand at current higher levels mainly led to fall in gold prices.

In addition, appreciation in the rupee against the dollar also influenced the sentiment, they said.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged Rs. 350 each to Rs. 29,950 and Rs. 29,750 per 10 grams, respectively, a level last seen on April 12.

Sovereign followed suit and lost Rs. 100 at Rs. 25,000 per piece of eight grams.

On the other hand, silver ready continued its rising trend and gained another Rs. 50 to Rs. 42,300 per kg and weekly-based delivery inched up by Rs. 10 to Rs. 41,890 per kg.

The white metal had gained Rs. 550 in the previous two sessions.

Silver coins met with resistance at higher levels and dropped by Rs. 1,000 to Rs. 79,000 for buying and Rs. 80,000 for selling of 100 pieces.