Gold falls Rs 250; silver plunges by Rs 825

New Delhi: Gold prices on Thursday slumped by Rs 250 to Rs 32,620 per 10 gram at the bullion market here due to weak demand from jewellers amid weak global cues, according to the All India Sarafa Association.

Tracking gold, silver also declined by Rs 825 to Rs 37,700 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from subdued domestic demand, weak global cues influenced sentiment here thereby resulting in fall in gold prices.

The US Federal Reserve's decision to hold rates also had an impact on gold prices.

The Federal Open Market Committee (FOMC) continues to view sustained expansion of economic activity, strong labour market conditions, and inflation near the Committee's symmetric two per cent objective as the most likely outcomes, as per a statement by the Fed.

"In light of global economic and financial developments and muted inflation pressures, FOMC will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," it said.

Globally, spot gold was trading lower at USD 1,271.50 an ounce, while silver was down at USD 14.72 an ounce in New York.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 250 each to Rs 32,620 and Rs 32,450 per 10 gram, respectively.

However, sovereign gold held steady at Rs 26,400 per eight gram.

Silver ready fell by Rs 825 to Rs 37,700 per kg and weekly-based delivery reduced by Rs 699 to Rs 36,374 per kg.

Silver coins, too, faced some pressure and fell by Rs 2,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.