Gold sheds Rs 200 on weak global cues

New Delhi: Gold prices plunged by Rs 200 to Rs 29,420 per ten gram at the bullion market on Saturday in line with a weak trend overseas amid a fall in local demand.

Silver followed suit and slipped below the Rs 39,000 level by tumbling Rs 825 to Rs 38,325 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers at domestic spot market, mainly pulled down the prices.

Globally, gold fell 0.75 per cent to USD 1,258.40 an ounce and silver by 2.49 per cent to USD to 16.24 an ounce in New York in yesterday's trade.

Besides, an appreciating rupee against the dollar made imports cheaper, weighing on the prices, they said. The rupee closed at a fresh two-year high of 63.58 against the dollar at the forex market.

In addition, a fading demand from local jewellers and retailers too fuelled the down trend, they added. In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 200 each to Rs 29,420 and Rs 29,270 per ten gram, respectively.

It had gained Rs 190 yesterday. Sovereign, however, remained unaltered at Rs 24,500 per piece of eight gram in limited deals.

Tracking gold, silver ready dropped by Rs 825 to Rs 38,325 per kg and weekly-based delivery by Rs 910 to Rs 37,260 per kg.

Silver coins, however, maintained a steady trend at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.