Gold, silver tumble on reduced offtake, weak global cues
New Delhi: Both the precious metals, gold and silver, on Wednesday tumbled on reduced offtake by stockists and jewellers at existing higher levels amid a weak trend overseas.
While gold plunged by Rs 200 to Rs 30,400 per 10 grams, silver lost Rs 700 to 53,700 per kg on fall in demand at prevailing higher levels among jewellers and industrial units.
Sentiment turned weak as buying activity declined among jewellers and stockists after a steep rise in precious metal prices Tuesday.
The trading sentiment was further hit as gold fell in global markets on concern deepening euro-zone debt crisis might strengthen the dollar and curb demand for the metal as an alternative investment.
In London, gold fell 0.4 percent to USD 1,565.98 an ounce and silver by 0.9 percent to USD 26.86 an ounce.
On the domestic front, gold of 99.9 and 99.5 percent purity dropped by Rs 200 each to Rs 30,400 and Rs 30,200 per 10 grams, respectively. The metal had jumped up by Rs 330 yesterday.
However, sovereigns remained steady at Rs 24,500 per piece of eight grams in limited deals.
Similarly, silver ready fell by Rs 700 to Rs 53,700 per kg and weekly-based delivery by Rs 675 to Rs 52,955 per kg. The metal had spurted by Rs 1,200 in the previous session.
Silver coins also declined by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces on subdued demand at higher levels.