Gold slumps on muted demand, global cues

Gold fell by Rs 200 to trade at over one-month low of Rs 31,250 per ten gram at the bullion market today owing to sluggish demand from local jewellers amid a weak trend overseas.

Silver followed suit and shed Rs 150 to Rs 39,250 per kg on reduced offtake by industrial units and coin makers.

Traders said easing demand from local jewellers and retailers at domestic spot market resulted in the downtrend.

Besides, sentiment weakened owing to a weak global trend as investors, awaiting next week's Federal Reserve meeting amid strength in dollar, dimmed the metal's safe haven investment appeal.

Globally, gold fell 0.64 per cent to USD 1,315.70 an ounce and silver by 0.85 per cent to USD 16.37 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 200 each to Rs 31,250 and Rs 31,100 per ten gram, respectively. It had shed Rs 65 yesterday.

Sovereign however was steady at Rs 24,800 per piece of eight gram.

In step with gold, silver ready declined by Rs 150 to Rs 39,250 per kg and weekly-based delivery by Rs 210 to Rs 38,560 per kg.

Silver coins too dropped by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.