Gold plunges Rs 350 on weak global cues, low local demand

A day after rallying sharply, gold prices tumbled Rs 350 to Rs 30,100 per 10 grams at the bullion market today on weak global cues and fall in demand from local jewellers.

Silver slipped below the Rs 41,000-mark by falling Rs 500 to Rs 40,600 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend overseas, fall in demand from jewellers and retailers at current levels at domestic spot markets pulled down gold prices.

Globally, gold fell by 0.07 per cent to USD 1,308.60 an ounce and silver by 0.43 per cent to USD 17.35 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity slumped by Rs 350 each to Rs 30,100 and Rs 29,950 per ten grams respectively. It had surged Rs 550 yesterday.

Sovereign followed suit and shed Rs 100 to Rs 24,500 per piece of eight grams.

Following gold, silver ready dropped by Rs 500 to Rs 40,600 per kg and weekly-based delivery by Rs 300 to Rs 39,600 per kg.

In line with overall trend, silver coins plummeted by Rs 1,000 to Rs 73,000 for buying, and Rs 74,000 for selling of 100 pieces.