Gold prices plunged by Rs410 to trade at over two-week low of Rs27,790 per 10 grams at the bullion market today owing to slackened demand at prevailing levels amid a weak global trend.
Silver also slumped by Rs820 to Rs37,530 per kg on poor offtake by industrial units and coin makers. Traders said apart from slackened demand at current levels from jewellers and retailers, a weak global trend mainly pulled down gold and silver prices. They said, however, depreciating rupee which slipped to over three-week low of Rs62.07, capped the losses as a weak rupee made imports costlier.
Gold in New York fell by 2.47 per cent to $1,233.30 an ounce in Friday's trade after data showed that the US added more jobs than forecast in January, boosting expectations that the Federal Reserve will move towards the first interest-rate hike since 2006. Silver also declined by 3.11 per cent to $16.69 an ounce.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs410 each to Rs27,790 and Rs27,590 per 10 grams, respectively, a level not seen since January 14. Sovereign followed suit and lost Rs100 at Rs23,900 per piece of eight grams.