Gold slumps Rs 250 on weak global cues, low demand

New Delhi: Gold prices plunged by Rs 250 to Rs 31,450 per 10 grams at the bullion market here on Saturday, tracking a weak trend overseas amid easing demand from local jewellers.

However, silver hardened by Rs 70 to Rs 38,150 per kg on scattered enquiries from industrial units and coin makers.

Marketmen said sentiment turned bearish after gold prices fell in global markets as the dollar firmed on persistent concerns about an escalating trade war between the US and China.

Globally, gold fell 0.68 per cent to USD 1,198.70 an ounce and silver 0.38 per cent to USD 14.25 an ounce in New York in Friday’s trade.

Fall in demand from local jewellers and retailers at the domestic spot markets too put pressure on gold prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted down by Rs 250 each to Rs 31,450 and Rs 31,300 per 10 grams, respectively.

The precious metal had gained Rs 50 yesterday.

Sovereign, however, remained flat at Rs 24,500 per piece of eight grams.

On the other hand, silver ready advanced by Rs 70 to Rs 38,150 per kg and week-based delivery by Rs 15 to Rs 37,590 per kg.

Silver coins, however, were unaltered at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.