Gold plunges Rs 190 on fall in demand

Gold slipped below the Rs 30,000 -mark by falling Rs 190 to Rs 29,860 per 10 grams at the bullion market today on muted demand from local jewellers even as the metal strengthened overseas.

Silver followed suit and declined by Rs 200 to Rs 40,000 per kg due to reduced offtake by industrial units and coin makers.

Traders said decline in demand from jewellers and retailers at existing levels in the domestic spot market mainly weighed on gold prices but a firm trend overseas capped the slide.

Globally, gold rose 0.44 per cent to USD 1,293.20 an ounce and silver by 0.56 per cent to USD 17.10 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity went down by Rs 190 each to Rs 29,860 and Rs 29,710 per 10 grams, respectively. It had gained Rs 300 in yesterday's trade.

Sovereign, however, remained unaltered at Rs 24,500 per piece of eight grams in limited deals.

Following gold, silver ready drifted lower by Rs 200 to Rs 40,000 per kg and weekly-based delivery by Rs 240 to Rs 39,060 per kg.

Silver coins, however, held steady at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.