Gold lower by Rs 90 on weak global cues

New Delhi: Gold prices drifted lower by Rs 90 to Rs 27,860 per 10 grams today, tracking a weak trend in global market and a fall in demand from local jewellers due to scarcity of funds. Silver also cracked below the Rs 39,000-mark by plunging Rs 750 to Rs 38,900 per kg on poor offtake by industrial units and coin makers.

Traders said that apart from a weak trend overseas, considerable drop in demand from jewellers and retailers at domestic spot market, hit by prevailing cash crunch due to demonetisation, weighed on the precious metal prices.

On November 8, the government had announced its decision to demonetise 500 and 1,000 rupee notes in a bid to flush out black money, leading to the cash drought.

Globally, moving in a narrow range ahead of the holidays and US economic data, gold was trading fractionally lower at USD 1,130.50 an ounce in Singapore. Silver was down 0.31 per cent at USD 15.85 an ounce.

In the national capital, 99.9 per cent and 99.5 per cent purity gold fell by Rs 90 each to Rs 27,860 and Rs 27,710 per 10 grams, respectively.

The yellow metal had gained Rs 100 in yesterday's trade. Sovereign, however, continued to be traded at previous level of Rs 24,000 per piece of eight grams in scattered deals. In tune with gold, silver ready plunged by Rs 750 to Rs 38,900 per kg and weekly-based delivery by Rs 730 to Rs 38,945 per kg.

On the other hand, silver coins remained unaltered at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.