Gold prices hit 2-month low; closes below Rs 31,000 per 10 gms

New Delhi: Gold fell to over two-month low of Rs 30,950 per 10 grams in the bullion market here Saturday driven by a sharp fall in prices overseas, while silver nosedived by Rs 1,500 per kg on poor offtake.

While gold lost Rs 270 to Rs 30,950 per 10 grams, while silver shed Rs 1,500 to Rs 58,000 per kg.

Traders said sentiment weakened on global trend where precious metal's tumbled the most in more than four months to below USD 1,700 an ounce as US payrolls in October rose more than forecast, easing pressure on the Federal Reserve to expand monetary stimulus.

In New York, gold tumbled by 2.3 percent to USD 1,675.20, the biggest drop since June 21. Silver also plunged 4.3 percent to USD 30.85 an ounce, the biggest fall since June 21.

Back home, gold of 99.9 and 99.5 percent purity fell by Rs 270 each to Rs 30,950 and Rs 30,750 per 10 grams, respectively. The metal had lost Rs 280 yesterday.

Sovereigns declined by Rs 50 to Rs 25,400 per piece of eight grams.

Silver ready tumbled by Rs 1,500 to Rs 58,000 per kg and weekly-based delivery by Rs 1,665 to Rs 57,635 per kg. The white metal had lost Rs 750 in the previous session.

Silver coins lost Rs 2,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

PTI