Gold prices dropped by Rs. 220 to Rs. 32,350 per ten gram

Gold and silver prices fell in the national capital on Monday on emergence of profit selling by stockists at prevailing higher levels amid weak global trend.

While gold dropped by Rs. 220 to Rs. 32,350 per ten gram and silver lost Rs. 100 to Rs. 49,800 per kg as industrial units and coin makers refrained from making fresh purchases at prevailing higher levels.

Traders said profit selling by stockists emerged after a rally in the previous session mainly pulled down gold and silver prices.

They said a weakening trend in the overseas markets before the US Federal Reserves begins meeting where policy makers likely to decide on the pace of monetary stimulus further influenced the downtrend.

Gold in Singapore, which normally sets price trend on the domestic front, fell by $2 to $1,350.90 an ounce and silver by 0.07 per cent to $22.58 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs. 220 each to Rs. 32.350 and Rs. 32,150 per ten gram, respectively. It had gained Rs. 170 in the previous session. Sovereign followed suit and fell by Rs. 300 to Rs. 25,000 per piece of eight gram.

In line with a general weak trend, silver ready fell by Rs. 100 to Rs. 49,800 per kg while weekly-based delivery moved up by Rs. 250 to Rs. 49,950 per kg on speculators buying.

Silver coins also plunged by Rs. 3,000 to Rs. 85,000 for buying and Rs. 86,000 for selling of 100 pieces on fall in demand at existing higher levels.