Gold prices plunge by Rs 70 to Rs 26,800, low demand

Gold prices plunged by Rs 70 to Rs 26,800 per ten grams at the bullion market on Tuesday, tracking a weak global trend amid subdued demand from jewellers and retailers at current levels.

Silver also eased by Rs 200 to Rs 36,800 per kg on reduced offtake by industrial units and coin makers. Traders said a weak global trend where gold fell from seven-week highs and fall in demand from jewellers, mainly put pressure on precious metals' prices.

Globally, gold in Singapore which normally determines price trend on the domestic front here, lost 0.9% to $1,153.05 an ounce. Silver also fell 0.7% to $15.71 an ounce. In the national capital, gold of 99.9 and 99.5% purity fell by Rs 70 each to Rs 26,800 and Rs 26,650 per ten gram, respectively. It had gained Rs 270 in last two sessions.

Sovereign, however, held steady at Rs 22,400 per piece of eight grams. Tracking gold, silver ready fell by Rs 200 to Rs 36,800 per kg and weekly-based delivery by Rs 295 to Rs 36,865 per kg.

Silver coins also dropped by Rs 1,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.