Gold slumps to 2-week low, sheds Rs 400 on global weakness

New Delhi: Falling for the second day, gold lost its sheen by plunging another Rs 400 to trade at two-week low of Rs 29,150 per 10 grams today, tracking a weak trend overseas.

Moreover, reduced offtake by jewellers owing to slackened demand at the domestic spot market at prevailing level too hit sentiment.

Silver cracked below the Rs 41,000-mark by tumbling Rs 550 to Rs 40,950 per kg on poor offtake by industrial units and coin makers.

Traders said sentiment was downbeat, largely in sync with a weak trend overseas. A rally in the US stock markets that saw Dow Jones crossing 20,000 yesterday for the first time, along with stronger American currency and Treasury yields, hit the precious metals' safe haven appeal.

Globally, gold price fell 0.37 per cent to USD 1,183.90 an ounce, and silver by 0.27 per cent to USD 16.70 per ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity recorded a steep fall of Rs 400 each to Rs 29,150 and Rs 29,000 per 10 grams, respectively -- a level last seen on January 12 when it had closed at Rs 29,250. The precious metal had lost Rs 175 on Wednesday.

The market was shut yesterday for the Republic Day.

Sovereign, however, remained unaltered at Rs 24,300 per piece of eight grams.

Following gold, silver ready tumbled by Rs 550 to Rs 40,950 per kg and weekly-based delivery by Rs 695 to Rs 40,645 per kg.

Silver coins, on the other side, were unaltered at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces in scattered deals.