LM:Gold, silver drop on sluggish demand, global cues
New Delhi: Gold and silver prices tumbled in the national capital on Friday on sluggish demand and a weak global trend.
While gold prices declined by Rs340 to Rs30,200 per ten gram, silver dropped by Rs540 to Rs48,455 per kg on reduced offtake by jewellers and coin makers.
Traders said sluggish demand due to ongoing “sharads” an inauspicious fortnight in Hindu mythology for making new purchases mainly kept pressure on gold and silver prices.
They said a weakening global trend where gold dropped, following an unexpected decline in US jobless claims boosted speculation the Federal Reserve might taper stimulus, further influenced the sentiment.
Gold in Singapore, which normally sets price trend on the domestic front, declined by 0.13% to $1,322.10 an ounce. Silver lost 0.4% to $21.64 an ounce.
On the domestic front, gold of 99.9 and 99.5% purity plunged by Rs340 each to Rs30,200 and Rs30,000 per ten gram, respectively.
However, sovereign held steady at Rs25,000 for a piece of eight gram in restricted activity.
Silver ready tumbled by Rs540 to Rs48,455 per kg and weekly-based delivery by a similar margin to Rs48,355 per kg.
Silver coins also dropped by Rs1,000 to Rs84,000 for buying and Rs85,000 for selling of 100 pieces.
