Gold Plunges to Six-Week Low, Dips Below Rs.31k level

New Delhi: Gold prices plunged to a six-weeklow by losing Rs.330 to Rs.30,870 per 10gm in the national capital on Friday on heavy selling by stockists triggered by a meltdown in global markets.

Traders said sentiments turned bearish after gold became a worst performer in six months inoverseas markets as the struggle by US lawmakers to reach a budget deal strengthened the dollar and reduced demand for the metal as an alternate investment.

Gold in global markets, which normally set price trend on the domestic front, fell by 0.7 percent to $1,635.80 an ounce, the lowest price since August 22 and silver by 1.1 percent to $29.64, cheapest since August 22 in Singapore.

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Besides, sluggish domestic demand due to ending of marriage season further fuelled the downtrend, they said.

Silver followed suit and dropped by Rs.1,550 to Rs.57,750 per kg on poor demand from industrial units and coin makers.

On the domestic front, gold of 99.9 percent and 99.5 percent purity plunged by Rs.330 each to Rs.30,870 and Rs.30,670 per 10gm, respectively, the levels last seen on November 4. Sovereign also fell by Rs.100 to Rs.25,400 per piece of eight gram.

Similarly, silver ready dropped by Rs.1,550 to Rs.57,750 per kg and weekly-based delivery by Rs.2,085 to Rs.57,715 per kg. Silver coins lost Rs.1,000 to Rs.77,000 for buying and Rs.78,000 for selling of 100 pieces.

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