Gold dips below 32k level on sluggish demand, global cues
New Delhi: Gold prices dipped below Rs 32,000 per 10 gm level in the national capital on Saturday on sustained selling by stockists on sluggish demand amid a weakening global trend.
After losing Rs 875 in the last two trading sessions, the gold fell further by Rs 270 to Rs 31,830 per 10 gm on sustained selling against restricted buying. A weakening global trend also influenced the market sentiment.
However, silver gained Rs 250 to Rs 63,050 per kg on increased offtake by industrial units and coin makers.
Traders said sentiment remained bearish after gold capped its biggest weekly drop in more than five months in global markets on concern that US lawmakers may fail to reach a settlement in budget cuts known as the fiscal cliff.
Gold in New York, which normally set price trend on the domestic front, slid one percent to USD 1,712.70 an ounce and silver by 3.3 percent to USD 33.27 an ounce.
In addition, sluggish domestic demand at prevailing higher levels and strong rupee against American currency, also pulled down the dollar-denominated metal.
On the domestic front, gold of 99.9 and 99.5 percent purity plunged by Rs 270 each to Rs 31,830 and Rs 31,630 per 10 gm, respectively. Sovereign, however, rose by Rs 50 to Rs 25,600 per piece of eight gram.
On the other hand, silver ready gained Rs 250 to Rs 63,050 per kg while weekly-based delivery dropped by Rs 1625 to Rs 61,235 per kg on lack of speculators buying.
Meanwhile, silver coins spurted by Rs 2000 to Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces on upsurge in wedding season demand.