Gold Prices Plunge By 600 Rupees On Weak Global Cues

Gold prices on Tuesday plunged by Rs 600 to Rs 34,870 per 10 grams in bullion market in the national capital, reported news agency Press Trust of India (PTI). The prices of yellow metal fell on weak global trends amid a strong dollar and easing demand from local jewellers. According to the All India Sarafa Association, gold of 99.9 per cent and 99.5 per cent purity plummeted by Rs 600 each to Rs 34,870 per 10 grams and Rs 34,700 per 10 grams, respectively, in Delhi. Gold rates were unchanged on Monday at Rs. 35,470 per 10 grams.

Globally, gold prices ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses, reported news agency Reuters. Spot gold was down 0.2 per cent at $1,393.03 per ounce in intraday trade. US gold futures fell 0.3 per cent to $1,395.70 an ounce.

"Weak demand expectation from the world's second top consumer, India, due to a hike in duty also weighed down the sentiments. However, feeble global equities restricted major downside in the counter," Press Trust of India quoted Hareesh V, head commodity research, Geojit Financial Services as saying.

Last week, in the Budget for the current financial year, the government proposed to increase customs duty on gold and other precious metals to 12.5 per cent from current 10 per cent.

Sovereign gold, however, held steady at Rs 27,300 per eight grams.

Silver ready declined by Rs 48 to Rs 38,900 per kg and weekly-based delivery slumped Rs 93 to Rs 38,000 per kg. Silver coins held flat at Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.

(With agency inputs)