Gold Slumps By Rs 200 On Lacklustre Demand, Global Cues

New Delhi: Gold prices suffered losses for a third straight day, tumbling by another Rs 200 to Rs 28,600 per 10 grams on Wednesday, mostly on account of slack demand from jewellers along with weak global cues.

Silver also remained under selling pressure and cracked below the Rs 41,000-mark by falling Rs 250 to Rs 40,850 per kg.

Market analysts said tepid demand from jewellers and retailers at the domestic spot market and a weak trend in the global market weighed heavy on the precious metals.

Globally, gold fell 0.15 per cent to $1,167.50 an ounce and silver by 0.27 per cent to $16.65 an ounce in Singapore.

Trading volume remained thin in view of the prevailing cash crunch following demonetisation of high-value notes, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted down by Rs 200 each to Rs 28,600 and Rs 28,450 per 10 grams, respectively. The precious metal had lost Rs 450 over the past two days.

Sovereign too declined by Rs 100 to Rs 24,200 per piece of eight grams.

In a similar fashion, silver ready moved down by Rs 250 to Rs 40,850 per kg and weekly-based delivery by Rs 280 to Rs 40,920 per kg.

Silver coins plunged by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.