Gold slumps to Rs. 29,370; silver cracks below Rs. 40,000-mark

New Delhi-India (June 11)  Gold slumped for the third day, losing Rs. 55 to Rs. 29,370 per 10 grams at the bullion market today, largely in tandem with a weak global trend.

Besides, reduced offtake by local jewellers owing to a considerable fall in demand at the domestic spot market dampened the domestic sentiment.

Silver also cracked below the Rs. 40,000-mark by falling Rs. 225 to Rs. 39,900 per kg on poor offtake by industrial units and coin makers.

Traders said the sentiment was downbeat mostly in sync with a bearish trend overseas as the dollar regained some ground, eroding demand for the precious metals as a safe haven and a fall in demand from local jewellers at the domestic spot market.

Globally, gold fell 0.88 per cent to $1,266.40 an ounce and silver by 1.35 per cent to $17.17 an ounce in New York in yesterday’s trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs. 55 each to Rs. 29,370 and Rs. 29,220 per 10 grams, respectively. The precious metal had lost Rs. 370 in the past two days.

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

Following gold, silver ready slipped by Rs. 225 to Rs. 39,900 per kg and weekly-based delivery by Rs. 300 to Rs. 39,615 per kg.Silver coins, however, remained unaltered at Rs. 73,000 for buying and Rs. 74,000 for selling of 100 pieces.

Source: BusinessLine