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Gold dips below Rs28,000-level on weak global cues

LiveMint logoLiveMint 28-05-2014 PTI

New Delhi: Gold prices dipped below Rs28,000-level for the first-time in 10-months by plunging Rs400 to Rs 27,700 per ten grams in Delhi bullion market on Wednesday on sustained selling by stockists and a weak global trend. Silver also fell by Rs400 to Rs41,000 per kg on poor offtake by industrial units and coin makers.

Traders said persistent selling by stockists, tracking a weak trend overseas where gold fell to over 15-week low as positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus, mainly pulled down gold prices. Besides, sluggish demand from jewellers in the domestic market and signs of waning demand in China also influenced the sentiment, they said.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3% to $1,260.97 an ounce, the lowest price since 7 February.

In Delhi, gold of 99.9 and 99.5% purity plunged by Rs400 each to Rs27,700 and Rs27,500 per ten grams, respectively, a level last seen on 22 July last year. It had lost Rs220 in last two sessions. Sovereign lost Rs200 at Rs24,600 per piece of eight grams.

In a similar fashion, silver ready dropped further by Rs400 to Rs41,000 per kg and weekly-based delivery by Rs420 to Rs40,350 per kg. The white metal had lost Rs300 in last three days.

Silver coins also plunged by Rs1,000 to Rs77,000 for buying and Rs78,000 for selling of 100 pieces.

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