Gold prices plunge by Rs 510 on low demand, weak global cues

Gold prices tumbled by Rs 510, the biggest fall this year, to trade at almost six-week low of Rs 27,190 per 10 grams at bullion market today on slackened demand from jewellers and retailers amid weak global cues.

Silver also slumped by Rs 1,700 to Rs 37,200 per kg on poor offtake by industrial users and coin makers.

Traders said apart from low demand from jewellers and retailers, a weak global trend where gold dropped to six-week low mainly kept pressure on prices of the precious metals.

Globally, gold in Singapore lost 0.3 per cent to $1,206.48 an ounce before the Federal Reserve releases minutes from its January meeting amid speculation that Greece will ease a standoff with creditors by asking for a loan extension.

Besides, shifting of funds towards rising equity markets dampened the sentiment, they added.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 510 each to Rs 27,190 and Rs 26,990 per 10 grams, a level last seen on January 3.

Sovereign followed suit and shed Rs 50 at Rs 23,700 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 1,700 to Rs 37,200 per kg and weekly-based delivery by Rs 1,675 to Rs 36,600 per kg.

Silver coins plummeted by Rs 2,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.