Gold at 3-month low, tumbles Rs 520 on weak global cues

Gold prices on Saturday plunged by Rs 520, its biggest fall this year, to trade at an over three-month low of Rs 26,540 per 10 gram at the bullion market, tracking a weak global trend amid subdued demand from jewellers and retailers. 

Silver also fell sharply by Rs 500 to Rs 36,300 per kg on reduced offtake by industrial users and coin makers.

Bullion merchants said apart from slackened demand from jewellers and retailers, a weak global trend amid the US economy adding more jobs in February than forecast, has cut demand for the precious metal as a safe-haven, leading to fall in gold and silver prices. Bullion market remained closed on Thursday and Friday on account of "Holi" festival.

Gold in New York, which normally determines price trend on the domestic front, dropped by $29.30, or 2.45%, to 1,168.70 an ounce and silver by 1.70% to $15.93 an ounce in Friday's trade.

In the national capital, gold of 99.9 and 99.5% purity suffered this year's biggest fall of Rs 520 each to Rs 26,540 and Rs 26,340 per 10 grams respectively. Previously, the precious metal had recorded the largest decline of Rs 510 on February 18 last month.

Sovereign too declined by Rs 100 at Rs 23,600 per piece of eight grams.

Tracking gold, silver ready fell by Rs 500 to Rs 36,300 per kg and weekly-based delivery by Rs 300 to Rs 36,000 per kg. Silver coins nosedived by Rs 2,000 to Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces.