Gold plunges Rs 180 on global cues; snaps two-day rally

Gold prices retreated from over three-month highs by falling Rs 180 to Rs 27,710 per ten grams at the bullion market today on slackened demand from jewellers and retailers at prevailing levels amid a weak global trend.

In addition, appreciating rupee against the dollar that made imports cheaper, weighed on the prices.

Silver also eased by Rs 100 to Rs 39,400 per kg on lack of buying support from industrial units.

Bullion traders said besides weak global trend, easing demand from jewellers and retailers at existing levels mainly pulled down precious metal prices.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.2% to US $1,218.95 an ounce.

Silver fell 0.5% to US $17.37 an ounce.

In the national capital, gold of 99.9 and 99.5% purity plunged by Rs 180 each to Rs 27,710 and Rs 27,560 per ten gram, respectively. It had gained Rs 640 in last two days.

Sovereign, however, held steady at Rs 23,900 per piece of eight gram in limited deals.

Following gold, silver ready too declined by Rs 100 to Rs 39,400 per kg but weekly-based delivery advanced by Rs 185 to Rs 39,635 per kg on speculative buying.

Silver coins also supported by Rs 1,000 to Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.