Gold at three-month low on global cues

Extending losses for the eighth straight day, gold prices tumbled to trade at a three-month low of Rs. 27,600 per ten gram by falling Rs. 150 in the national capital on Tuesday on sustained selling by stockists amid a weakening global trend.

Silver also eased by Rs. 175 to Rs. 41,900 per kg on reduced off-take by industrial units and coin makers.

Traders said sentiment remained bearish after gold and silver fell in global markets as the dollar’s rally to a 13-month high dampened demand for the precious metal as an alternative investment.

Gold in New York, which normally sets price trend on the domestic front, fell by one per cent to $1,254.30 an ounce after dipping to $1,252.10, the lowest since June 10. Silver also fell by one per cent to $18.96 an ounce.

Besides, sluggish demand from jewellers and retailers dampened the sentiment, they said.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs. 150 each to Rs. 27,600 and Rs. 27,400 per ten grams respectively, a level last seen on June 13. The yellow metal had lost Rs. 550 in the previous seven sessions. Sovereign also shed Rs. 50 to Rs. 24,500 per piece of eight gram.

In line with a general weak trend, silver ready fell by Rs. 175 to Rs. 41,900 per kg and weekly-based delivery by Rs. 205 to Rs. 41,870 per kg. However, silver coins continued to be asked at previous level of Rs. 73,000 for buying and Rs. 74,000 for selling of 100 pieces.