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Gold Prices Plunge To 19-Month Low: 5 Things To Know

Sovereign also declined by Rs 100 to Rs 24,500 per piece of eight grams.
Sovereign also declined by Rs 100 to Rs 24,500 per piece of eight grams.

Gold prices tumbled by Rs 290 to Rs 30,340 per 10 grams at the bullion market on Thursday, driven by weak global cues amid fall in demand from local jewellers, reported news agency Press Trust of India (PTI). Silver followed suit and dropped by Rs 715 to Rs 38,000 per kg due to poor offtake by industrial units and coin makers. Gold prices fell to their lowest in more than 19 months as sentiment turned negative due to weak global leads with the dollar holding steady near a recent peak, eroding the appeal of the precious metal as a safe haven, traders said. Gold prices, which have largely been pressured by a strong dollar and rising US interest rates, have shed nearly 10 per cent in 2018, according to Reuters.

Here are key things to know about gold, silver prices today:

1. Globally, gold fell 1.59 per cent to $1,174.70 an ounce and silver by 4.16 per cent to $14.41 an ounce in New York in yesterday's trade. Besides, a considerable fall in demand from local jewellers and retailers at the domestic spot market fuelled the downtrend, traders said.

2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 290 each to Rs 30,340 and Rs 30,190 per 10 grams, respectively. Sovereign also declined by Rs 100 to Rs 24,500 per piece of eight grams.

3. "MCX gold after a mid-week holiday break, opened with massive gap down due to weakness in the COMEX gold. US President Donald Trump has rattled the world trade order by seeking to renegotiate the terms of some of the United States' trading relationships to combat what he calls unfair trade practices by China, Europe and other countries. In return, the greenback has experienced a safe haven buying," said Jigar Trivedi, Fundamental Research Analyst - Anand Rathi Commodities.

Since the yellow metal has fallen to its crucial support, we don't rule out possibility of short covering. Nonetheless strong economic releases from US may cap upside. Although the short term bottom is near, we continue to be negative on the yellow metal, he added.

4. Tracking gold, silver ready dropped by Rs 715 to Rs 38,000 per kg and weekly-based delivery by Rs 1,035 to Rs 36,705 per kg.

5. Silver coins, too, plummeted by Rs 1,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

(With agency inputs)