Gold dives Rs 125 on global softness, muted demand

New Delhi: Gold prices tumbled Rs 125 to Rs 29,100 per 10 grams today, snapping the two-day climb, hurt by a weak trend overseas amid tapering demand from local jewellers.

Silver also slipped below the Rs 39,000 mark by falling Rs 125 to Rs 38,950 per kg due to reduced offtake by industrial units and coin makers.

Traders said drop in demand from local jewellers and retailers at the domestic spot market was a big drag. Globally, gold fell 0.87 per cent to USD 1,245.70 an ounce and silver by 1.17 per cent to USD 16.49 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 125 each to Rs 29,100 and Rs 28,950 per 10 grams, respectively. The precious metals had gained Rs 125 in the last two days. Sovereign, however, remained flat at Rs 24,400 per piece of eight grams.

Following gold, silver ready fell by Rs 125 to Rs 38,950 per kg while weekly-based delivery held steady at Rs 38,485 per kg. Silver coins, however, continued to be traded at previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.