Gold price slips to 3-week low on weak global cues

New Delhi-India (Feb 10)  Gold lost its sheen by tumbling Rs. 400 to trade at a three-week low of Rs. 29,500 per 10 grams at the bullion market today, tracking a weak trend overseas.

Besides, reduced offtake by local jewellers due to fall in demand at existing levels too dampened the sentiment.

Silver also dropped by Rs. 490 to Rs. 42,250 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend in the global markets, fall in demand from local jewellers as well as retailers mainly pulled down gold prices.

Globally, gold prices fell 0.42 per cent to $1,222.70 an ounce and silver by 0.28 per cent to $17.56 per ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity suffered a setback of Rs. 400 each to Rs. 29,500 and Rs. 29,350 per 10 grams, respectively — a level last seen on January 16, when it had closed at Rs. 29,500.

Sovereign also traded lower by Rs. 100 to Rs. 24,400 per piece of eight grams.

Tracking gold, silver ready too plunged by Rs. 490 to Rs. 42,250 per kg and weekly-based delivery cracked below the Rs. 42,000-mark by falling Rs. 439 to Rs. 41,860 per kg.

Silver coins plummeted by Rs. 1,000 to Rs. 72,000 for buying and Rs. 73,000 for selling of 100 pieces.

Source: BusinessLine