Gold Hits 1-Month Lows on Weak Global Cues, Low Demand

New Delhi: Gold prices plunged by Rs 200 to hit a one-month low of Rs 27,000 per 10 grams at the bullion market on Friday, tracking global weakness along with sluggish demand from jewellers and retailers.

Silver also recorded a sharp fall of Rs 1,000 in prices to Rs 37,400 per kg due to reduced offtake by industrial units and coin makers.

Bullion traders said that besides weakening global trend where the precious metal fell to four-week lows, low demand from jewellers at domestic markets mainly kept pressure on gold prices here.

Globally, gold fell 0.73 per cent to $1,176.40 an ounce and silver 2.43 per cent to Rs 16.08 an ounce in New York in Thursday's trade.

In addition, appreciating rupee against the dollar that made the imports cheaper too influenced sentiment, they said.

At forex market, rupee was trading 14 paise higher at 63.86 against the dollar (intra-session).

In the national capital, gold of 99.9 and 99.5 per cent purity dropped by Rs 200 each to Rs 27,000 and Rs 26,850 per 10 grams, respectively, a level last seen on May 4. The precious metal had lost Rs 140 on Thursday.

Sovereign, however, continued to be traded at last level of Rs 23,700 per piece of 8 grams in limited deals. Following gold, silver ready suffered a setback of Rs 1,000 to Rs 37,400 per kg and weekly-based delivery by Rs 850 to Rs 37,080 per kg.

Silver coins also nosedived by Rs 1,000 to Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.