Gold slumps below Rs 27k as demand falters

Continuing its slide for the third straight day, gold price in the bullion market on Saturday slipped below the Rs 27,000 mark to trade at Rs 26,950 per 10 grams, an over 6-week low. It fell Rs 50, tracking a weak trend overseas.

Besides, weak demand from jewellers at domestic spot markets due to off-season for wedding played spoilsport.

Silver, too, shed Rs 50 at Rs 37,350 per kg for want of buying support from industrial units.

Bullion traders attributed the weakness in gold to a sluggish global trend, where the yellow metal slumped to an 11-week low after the US economy added more jobs in May than forecast, bolstering the case for the US Fed to raise interest rates.

Gold in New York, which normally sets the price trend on the domestic front, fell 0.6 percent to USD 1,168.10 an ounce and silver by 0.7 percent to USD 15.98 an ounce in yesterday's trade.

In the national capital, gold of 99.9 percent and 99.5 percent purity slid Rs 50 each to Rs 26,950 and Rs 26,800 per 10 grams, respectively, its weakest level since April 17. The precious metal had lost Rs 340 over the past two days. Sovereign fell Rs 100 to Rs 23,600 per piece of 8 grams.

Following gold, silver ready eased Rs 50 to Rs 37,350 per kg and weekly-based delivery Rs 70 to Rs 37,010 per kg. On the other hand, silver coins of 100 pieces ruled steady at Rs 54,000 for buying and Rs 55,000 for selling.