Gold price plunges by Rs 500 to Rs 29,600 per 10 grams

New Delhi – Gold prices plunged by Rs 500 to Rs 29,600 per 10 grams in the national capital Friday due to low demand from jewellers and retailers amid a weak global trend and strengthening rupee.

Silver also plummeted by Rs 900 to Rs 41,500 per kg on poor offtake by industrial units and coin makers.

Traders said subdued demand from jewellers and retailers at prevailing levels and a weak global trend led to fall in gold and silver prices.

Besides, appreciating rupee against the dollar which make the import of precious metals cheaper and investors diverting their funds from bullion to surging equity markets, also influenced the sentiment, they said.

Rupee was trading at 11-month high of 58.62 per dollar.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.20 per cent to USD 1,294.20 an ounce and silver by 0.51 per cent to USD 19.36 an ounce.

In Delhi, gold of 99.9 and 99.5 percent purity plunged by Rs 500 each to Rs 29,600 and Rs 29,400 per 10 grams, respectively, while sovereign shed Rs 100 to Rs 24,900 per piece of 8 grams.

In a similar fashion, silver ready tumbled by Rs 900 to Rs 41,500 per kg and weekly-based delivery by Rs 1,070 to Rs 41,130 per kg.

Silver coins, however, remained steady at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.