Gold tumbles on sluggish demand, global cues

Gold prices tumbled by Rs 350 to Rs 27,450 per ten gram in the national capital today following a long weekend and ending of festive season with demand drying up amidst a weak global trend.

Silver also eased by Rs 35 to Rs 38,200 per kg on reduced offtake by industrial units and coin makers.

Traders said fall in demand from jewellers and retailers due to end of festive season and a weak global trend where gold retreated from a six-week high as investors expected the Federal Reserve to end its bond-buying programme this week, eroding safe-haven demand, mainly pulled down precious metal prices here.

Markets remained closed on October 24 and 25 on account of ‘Vishwakarma Day’ and ‘Bhai Dooj’ respectively.

Gold in Singapore, which normally set price trend on the domestic front, lost 0.3 per cent to $1,227.51 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 350 each to Rs 27,450 and Rs 27,250 per ten gram respectively.

It had lost Rs 125 in the past two days.

Sovereign followed suit and shed Rs 100 at Rs 24,200 per piece of eight gram.

In a similar fashion, silver ready declined by Rs 35 to Rs 38,200 per kg, while weekly-based delivery rose by Rs 20 to Rs 38,020 per kg.

Silver coins plummeted by Rs 2,000 to Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.