Gold price plunges by Rs 250 to Rs 30,500 per 10 grams

New Delhi: Gold lost its edge on Thursday by tumbling Rs 250 to Rs 30,500 per 10 grams because of a rising dollar on stronger probability of a rate hike by the US Federal Reserve this year.

Silver also dropped Rs 600 to Rs 40,300 per kg, taking a hit from reduced offtake by industrial units and coin makers.

At the Multi Commodity Exchange (MCX), gold for delivery in October was trading lower by Rs 265 or 0.89 percent at Rs 29,509 per 10 grams.

Globally, gold slipped to its lowest in over three weeks today as a stronger dollar and increasing prospects of a December rate hike by the Federal Reserve curbed appetite for the metal.

Spot gold was down 0.2 percent at USD 1,298.06 an ounce, after earlier touching its lowest since late August at USD 1,294.41. US gold futures for December delivery dropped nearly 1.2 percent to USD 1,301.20 an ounce.

In the national capital, gold of 99.9 percent and 99.5 percent purity slumped by Rs 250 each to Rs 30,500 and Rs 30,350 per 10 grams, respectively. The yellow metal had gained Rs 150 yesterday.

Sovereign, however, continued to be traded at the last level of Rs 24,700 per piece of eight grams in limited deals.

Silver ready dropped by Rs 600 to Rs 40,300 per kg and weekly-based delivery by Rs 655 to Rs 39,665.

Silver coins, however, remained flat at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.