Gold falls to Rs20,920/kg on weak global cues, sluggish demand

Both the precious metals, gold and silver nosedived today on heavy offloading, driven by a sharp fall in its prices in global markets. While gold fell by Rs250 to Rs20,920 per 10 grams, silver lost Rs1,100 to settle at Rs52,500 per kg.

Trading sentiments turned bearish after gold declined to the lowest level in more than three weeks in global markets as some investors sold the metal to raise cash to pay for losses of dropping commodities and equities prices.

In the global markets, gold tumbled by $33.10 to $1,395.70 an ounce and silver plunged by $1.70 to $34.34 an ounce.

Besides, on the domestic front end of marriage season also influenced the trading sentiment to some extent.

Silver ready nosedived by Rs1,100 to Rs52,500 per kg and weekly-based delivery by Rs1,225 to Rs52,060 per kg. Silver coins followed suit and tumbled by Rs1,000 to Rs57,000 for buying and Rs57,500 for selling of 100 pieces.

In line with the general weakening trend, gold of 99.9 and 99.5% purity plunged by Rs 250 each to Rs20,920 and Rs20,800 per 10 grams, respectively. The metal had lost Rs140 yesterday.

Sovereigns, too, shed Rs100 to Rs17,400 per piece of eight grams.