Gold falls on weak global cues, muted demand

New Delhi : Gold prices today plunged by Rs 200 to Rs 30,550 per ten gram at the bullion market, taking weak cues from overseas markets, and fall in demand from local jewellers.

Silver also dropped by Rs 600 to Rs 40,200 per kg due to reduced offtake by industrial units and coin makers.Sentiment weakened largely in sync with a weak trend overseas where gold slid to a seven-week low after strong US manufacturing data strengthened the dollar and eroded appeal of the precious metal as a safe haven, traders said.

Globally, gold fell 0.14 per cent to USD 1,268.70 an ounce in Singapore.In addition, fading demand from local jewellers and retailers at domestic spot market, too weighed on the prices.In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 200 each to Rs 30,550 and Rs 30,400 per 10 gram, respectively.

Sovereign however remained unaltered at Rs 24,700 per piece of eight gram.In line with the overall trend, silver ready drifted down by Rs 600 to Rs 40,200 per kg and weekly-based delivery by Rs 455 to Rs 39,285 per kg.Silver coins however remained flat at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.