Gold prices plunge by Rs 410 on weak global cues, low demand

Gold prices plunged by Rs 410 to trade at over two-week low of Rs 27,790 per 10 grams at the bullion market today owing to slackened demand at prevailing levels amid a weak global trend.

Silver also slumped by Rs 820 to Rs 37,530 per kg on poor offtake by industrial units and coin makers.

Traders said apart from slackened demand at current levels from jewellers and retailers, a weak global trend mainly pulled down gold and silver prices.

They said, however, depreciating rupee which slipped to over three-week low of Rs 62.07, capped the losses as a weak rupee made imports costlier.

Gold in New York fell by 2.47% to $1,233.30 an ounce in Friday's trade after data showed that the US added more jobs than forecast in January, boosting expectations that the Federal Reserve will move towards the first interest-rate hike since 2006.

Silver also declined by 3.11% to $16.69 an ounce.

In the national capital, gold of 99.9 and 99.5% purity plunged by Rs 410 each to Rs 27,790 and Rs 27,590 per 10 grams, respectively, a level not seen since January 14.

Sovereign followed suit and lost Rs 100 at Rs 23,900 per piece of eight grams.

In a similar fashion, silver ready dropped by Rs 820 to Rs 37,530 per kg and weekly-based delivery by Rs 990 to Rs 37,150 per kg.

Silver coins nosedived by Rs 2,000 to Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.