Gold plunges Rs 460 on weak global cues, fall in demand

Gold prices tumbled by Rs 460 to Rs 31,390 per 10 grams at the bullion market today, snapping their four-day rising streak due to subdued global cues amid slump in local jewellers' demand.

Silver also fell by Rs 250 to Rs 39,300 per kg owing to reduced offtake by industrial units and coin makers.

Traders said, sentiment was downbeat as the precious metal fell in global markets, because the dollar held recent highs after Federal Reserve Chairman Jerome Powell vowed to prevent the economy from overheating while sticking with gradual rate rises.

Gold prices fell 0.07 per cent to USD 1,316.80 an ounce,

and silver by 0.37 per cent to USD 16.32 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 460 each to Rs 31,390 and Rs 31,240 per 10 grams, respectively. The precious metals had gained Rs 500 in the previous four sessions.

Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams in limited deals.

Following gold, silver ready drifted down by Rs 250 to Rs 39,300 per kg and weekly-based delivery by Rs 425 to Rs 38,125 per kg.

Silver coins, however, were unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.