Gold slumps on low demand, weak global cues

Gold tumbled by Rs 155 to Rs 29,510 per ten gram at the bullion market today on easing demand from local jewellers amid a weak trend overseas.

Silver too fell by Rs 480 to Rs 37,800 per kg due to reduced offtake by industrial units and coin makers.Traders said fall in demand from local jewellers and retailers at existing levels pulled down the gold prices.

Besides, weak global cues as US Fed decided to hike interest rates, reducing the appeal of non-yielding bullion, dampened the sentiment.Globally, gold fell 0.22 per cent to USD 1,252.70 an ounce and silver by 1.06 per cent to USD 15.80 an ounce in New York in yesterday's trade.

An appreciating rupee against the dollar also weighed on gold prices, making import of the precious metal cheaper.In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 155 each to Rs 29,510 and Rs 29,360 per ten gram, respectively. The precious metal had gained Rs 265 in the previous two days.

Sovereign however held steady at Rs 24,500 per piece of eight gram.Following gold, silver ready slipped by Rs 480 to Rs 37,800 per kg and weekly-based delivery by Rs 440 to Rs 37,020 per kg.Silver coins however continued to be traded at the previous level of Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.