Gold slips to Rs 29,650 on low demand, weak overseas trend

Gold plunged by Rs 600 to Rs 29,650 per ten grams at the bullion market today on fall in demand from jewellers at prevailing higher levels coupled with a weak trend overseas.

Silver followed suit, falling by Rs 950 to Rs 41,100 per kg on poor offtake by industrial units and coin makers.

Traders said sentiment dampened as demand from jewellers weakened amid a weak trend overseas where gold retreated from almost two-year highs as investors pared bets on the outcome of next week s UK vote on membership in the European Union, reducing demand for the metal as a haven.

Globally, gold fell by $13.50 to $1,278 an ounce in New York in Friday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs 600 each to Rs 29,650 and Rs 29,500 per ten grams, respectively. The precious metal had surged Rs 580 yesterday.

Sovereign fell by Rs 200 to Rs 23,100 per piece of eight grams.

Tracking gold, silver recorded a fall of Rs 950 to Rs 41,100 per kg and weekly-based delivery by Rs 1,215 to Rs 41,150 per kg.

Silver coins plummeted by Rs 2,000 to Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.