May 30, 2012, 03.42 PM IST

Gold, silver tumble on weak global cues, poor demand

Both the precious metals, gold and silver tumbled on the bullion market today on heavy selling by stockists, triggered a weak trend in overseas markets

Source: PTI

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Gold, silver tumble on weak global cues, poor demand

Both the precious metals, gold and silver tumbled on the bullion market today on heavy selling by stockists, triggered a weak trend in overseas markets. While gold dropped by Rs 180 to Rs 29,470 per 10 gm, silver lost Rs 850 to Rs 53,900 per kg on poor demand at prevailing higher levels, driven by weak global trends.

Sentiment turned bearish after gold in international markets dropped to one week-low as concern that the debt crisis in Europe was escalating strengthened the dollar as a safe haven. Gold in global markets, which normally set price trend on the domestic front, declined by 0.6% to a one-week low of USD 1,545.88 an ounce and silver by 1% to USD 27.57 an ounce in Singapore.

In addition, poor demand at prevailing higher levels from industrial units and jewellers further fuelled the downtrend in the precious metals. On the domestic front, gold of 99.9 and 99.5% purity plunged by Rs 180 each to Rs 29,470 and Rs 29,330 per 10 gm, respectively, while sovereign remained steady at Rs 23,850 per piece of eight gms in scattered deals.

In line with a general weakening trend, silver ready dropped by Rs 850 to Rs 53,900 per kg and weekly-based delivery by Rs 880 to Rs 53,840 per kg on reduced offtake by industrial units and jewellery manufacturers. However, silver coins held steady at Rs 64,000 for buying and Rs 65,000 for selling of 100 pieces.