Gold at 3-month low, down Rs 210 on global cues

Falling for the third straight day, gold prices slumped by Rs 210 to trade at over three-month low of Rs 26,500 per ten grams at the bullion market in the national capital on Thursday.

Further, slackened buying by jewellers at the spot market weighed on the precious metal prices.

Silver also remained under selling pressure and traded lower by Rs 300 to Rs 35,750 per kg.

Bullion traders said a weak trend overseas where gold tumbled on speculation that US employment data will show further signs of recovery, boosting the outlook for higher interest rates, mainly dragged down the yellow metal prices.

Gold in Singapore, which normally determines price trend on the domestic front, fell 0.5 per cent to $1,162.84 an ounce, the lowest since March 19.

Silver also eased by 0.2 per cent to $15.54 an ounce.

In addition, shifting of funds towards domestic equity market, further dampened the sentiments.

In Delhi, gold of 99.9 and 99.5 per cent purity lost another Rs 210 each to Rs 26,500 and Rs 26,350 per ten grams respectively.

The precious metal prices have fallen by Rs 240 in the previous two days.

Sovereign, however, held steady at Rs 23,300 per piece of eight grams.

Silver ready moved down by Rs 300 to Rs 35,750 per kg and weekly-based delivery by Rs 380 to Rs 35,180 per kg.

Silver coins too came under some pressure and slumped by Rs 1,000 to Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.