Gold falls below Rs 29,000 on weak global cues, low demand

New Delhi : Gold prices plunged Rs 235 to Rs 28,915 per 10 grams at the bullion market on Tuesday amid a weak trend overseas and fall in demand from local jewellers.

However, silver remained in demand and advanced by Rs 315 to Rs 39,815 per kg. Traders said apart from a weak trend overseas, fading demand from local jewellers mainly pulled down gold prices.

Globally, gold fell 0.02% to USD 1,260.10 an ounce in Singapore. In the national capital, gold of 99.9 and 99.5% purity tumbled Rs 235 each to Rs 28,915 and Rs 28,865 per 10 grams respectively. It had gained Rs 50 on Monday.

Sovereign, however, remained unaltered at Rs 24,400 per piece of eight gram. On the other hand, silver ready rose further by Rs 315 to Rs 39,815 per kg, while weekly-based delivery recaptured the Rs 40,000-mark per kg by surging Rs 700.

Silver coins, however, continued to be traded at previous level of Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.