Gold tumbles, dips to over 3-month low on global cues

Gold prices tumbled by Rs. 440 to hit over three-month low of Rs. 27,010 per ten gram in the national capital today on heavy selling by stockists, triggered by a weakening global trend.

Besides, sluggish demand and subdued global cues also weighed on the precious metal prices.

Silver also fell for the third day and shed another Rs. 100 to Rs. 40,900 per kg on reduced offtake by industrial units and coin makers.

Traders said sentiment turned weak largely in tandem with a weak trend overseas where gold fell to 8-month low after the Federal Reserve raised its interest-rate forecasts this week, strengthening the dollar, reduced the metal demand.

Gold in London, which normally sets price trend on the domestic front, fell by 0.2 per cent to $1,222.71 an ounce and silver by 0.1 per cent to $18.51 an ounce.

Sluggish domestic demand in view of ongoing “Sharadh”, considered to be an inauspicious fortnight for making new purchases, also dampened the sentiment, they said.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs. 440 each to Rs. 27,010 and Rs. 26,810 per ten gram respectively, a level last seen on June 9.

Sovereign, however, moved in a tight range on lack of buying support and settled at last level of Rs 24,400 per piece of eight gram.

Silver ready traded lower by Rs. 100 to Rs. 40,900 per kg and weekly-based delivery by Rs. 260 to Rs. 40,810 per kg. The white metal had lost Rs. 600 in the previous two sessions.

Silver coins dropped by Rs. 1,000 to Rs. 70,000 for buying and Rs. 71,000 for selling of 100 pieces.