Gold tumbles to 9-week low of Rs 29,850 on global cues

Gold tumbled to a nine-week low and dipped below the Rs 30,000 level in the national capital on Tuesday on heavy selling by stockists amid a weakening global trend.

The yellow metal dropped by Rs 350 to Rs 29,850 per 10 grams - a level last seen on January 17.

Strengthening rupee, which made imports of the precious metals cheaper, further influenced trading sentiment in the national capital.

Silver also extended its losing streak for a seventh straight session, declining by Rs 350 to Rs 44,200 per kg. The white metal had lost Rs 2,650 in last six trading sessions.

Bullion merchants said selling pressure gathered momentum as gold fell the most in 13 weeks in global markets after the outlook for higher US interest rates dampened demand for the precious metal as a store of value.

Gold in New York, which normally sets price trend on the domestic front, fell 1.9 per cent to $1,311.10 an ounce - the biggest drop since December 19. Silver also fell 1.2 per cent to $20.06 an ounce.

The strengthening rupee against the greenback made the dollar-priced imports of precious metals cheaper which also influenced the trading sentiment, they said.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 350 each to Rs 29,850 and Rs 29,650 per 10 grams, respectively. Sovereign followed suit and lost Rs 100 at Rs 25,100 per piece of 8 grams.

Silver ready fell by Rs 350 to Rs 44,200 per kg and weekly-based delivery by Rs 460 to Rs 43,790 per kg, while silver coins plunged by Rs 1,000 to Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.