Gold prices drop below Rs30,000, silver plunges Rs800

New Delhi-India (Aug 16)  Gold moved on a slippery track on Wednesday, settling below the Rs 30,000-mark by plunging Rs 300 to Rs 29,750 per 10 grams, in a sign of subdued overseas trend as well as local demand.

The plunge was sharper in silver, which cracked below the Rs 40,000 level at Rs 39,300 per kg, a loss of Rs 800, weighed down by a drop in offtake.

Data on US manufacturing came in better than expected, which in turn increases the probability of higher returns from the dollar and treasuries.

Additionally, receding geo- political worries involving North Korea and the US made the precious metals lose sheen.

Globally, gold fell 0.09% to $1,270 an ounce in Singapore. Fading demand from local jewellers and retailers at the current level pulled down the gold prices further.

In the national capital, gold of 99.9% and 99.5% purity fell Rs300 each to Rs29,750 and Rs29,600 per 10 grams, respectively. Sovereign, however, remained flat at Rs24,500 per piece of eight grams in limited deals.

Silver ready dropped as much as Rs800 to Rs39,300 per kg and weekly-based delivery Rs885 to Rs38,365. Silver coins saw a price decline of Rs1,000 to Rs72,000 for buying and Rs73,000 for selling of 100 pieces.

Source: LiveMint