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Gold slumps to 2-week low, sheds Rs.400 on global weakness

PTI | New Delhi |


Falling for the second day, gold lost its sheen by plunging another Rs.400 to trade at two-week low of Rs.29,150 per 10 grams on Friday, tracking a weak trend overseas.

Moreover, reduced offtake by jewellers owing to slackened demand at the domestic spot market at prevailing level too hit sentiment.

Silver cracked below the Rs.41,000-mark by tumbling Rs.550 to Rs.40,950 per kg on poor offtake by industrial units and coin makers.

Traders said sentiment was downbeat, largely in sync with a weak trend overseas. A rally in the US stock markets that saw Dow Jones crossing 20,000 on Thursday for the first time, along with stronger American currency and Treasury yields, hit the precious metals' safe haven appeal.

Globally, gold price fell 0.37 per cent to $1,183.90 an ounce, and silver by 0.27 per cent to $16.70 per ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity recorded a steep fall of Rs.400 each to Rs.29,150 and Rs.29,000 per 10 grams, respectively — a level last seen on January 12 when it had closed at Rs.29,250. The precious metal had lost Rs.175 on Wednesday.

The market was shut on Thursday for the Republic Day.

Sovereign, however, remained unaltered at Rs.24,300 per piece of eight grams.

Following gold, silver ready tumbled by Rs.550 to Rs.40,950 per kg and weekly-based delivery by Rs.695 to Rs.40,645 per kg.

Silver coins, on the other side, were unaltered at Rs.72,000 for buying and Rs.73,000 for selling of 100 pieces in scattered deals.