Gold Dips Below Rs.28,000-Level On Weak Global Cues

BANGALORE: Gold prices dipped below Rs.28,000-level for the first-time in 10-months by plunging Rs.400 to Rs.27,700 per ten grams in the national capital on sustained selling by stockists and a weak global trend. Silver also fell by Rs.400 to Rs.41,000 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 U.S. 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 percent to $1,260.97 an ounce, the lowest price since February 7. In Delhi, gold of 99.9 and 99.5 percent purity plunged by Rs.400 each to Rs.27,700 and Rs.27,500 per ten grams, respectively, a level last seen on July 22 last year. It had lost Rs.220 in last two sessions. Sovereign lost Rs.200 at Rs.24,600 per piece of eight grams. In a similar fashion, silver ready dropped further by Rs.400 to Rs.41,000 per kg and weekly-based delivery by Rs.420 to Rs.40,350 per kg. The white metal had lost Rs.300 in last three days. Silver coins also plunged by Rs.1,000 to Rs.77,000 for buying and Rs.78,000 for selling of 100 pieces.

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