Gold, silver tumble on weak global cues

Tracking a weak trend overseas and low demand from domestic jewellers and retailers, gold prices plunged by Rs 200 to Rs 26,350 per ten gram in New Delhi on Monday.

In addition, diversion of funds towards the record breaking domestic equity markets weighed on the precious metal prices, bullion traders said.

Silver also eased by Rs 200 to Rs 36,050 per kg on reduced offtake by industrial units and coin makers.

Weakening trend in global markets where gold dropped to four-year low after the US Federal Reserve's decided to end its bullion friendly bond-buying programme and fall in demand from jewellers and retailers, mainly led to a fall in gold and silver prices, they said.

Gold in Singapore, which normally set price trend on the domestic front, fell 1 per cent to $1,161.75 an ounce and Silver lost 2.4 per cent to $15.77 an ounce, the lowest since February 2010.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 200 each to Rs 26,350 and Rs 26,150 per ten gram respectively. Sovereign followed suit and declined by Rs 100 to Rs 23,700 per piece of eight gram.

In a similar fashion, silver ready declined by Rs 200 to Rs 36,050 per kg and weekly-based delivery by Rs 460 to Rs 35,340 per kg.

Silver coins nosedived by Rs 1,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces following end of festive season.