Gold prices tumbled by Rs400 to hit one-week low of Rs26,750 per 10 grams at the bullion market on Thursday amid a weak global trend and low demand from jewellers and retailers. Silver also plunged by Rs1,350 at Rs36,650 per kg on poor offtake by industrial users and coin makers.
Bullion merchants said apart from sluggish demand from jewellers and retailers, a weakening global trend where gold declined to over one-week low after minutes of the Federal Reserve’s last meeting showed that some policymakers favoured raising interest rates in June, mainly dampened the sentiments here.
Gold prices in Singapore, which normally determines trends on the domestic front, fell by 0.8 per cent to $1,192.74 an ounce, the lowest since April 1 and silver dropped 1.8 per cent to $16.23 an ounce, the lowest since March 20.
In the national capital, gold of 99.9 per cent purity suffered a sharp set-back of Rs400 each at Rs26,750 and Rs26,600 per 10 grams, respectively, a level last seen on April 1. The precious metal has lost Rs100 in the past two days.
Sovereign, however, held steady at Rs23,700 per piece of eight grams. Tracking gold, silver ready also dropped by Rs1,350 at Rs36,650 per kg and weekly-based delivery by Rs1,270 at Rs36,450 per kg. Silver coins also nosedived by Rs2,000 at Rs55,000 for buying and Rs56,000 for selling of 100 pieces.