Gold dips below Rs 26,000 on global cues, sluggish demand

New Delhi: Gold prices slipped below 26,000 by falling Rs 150 to Rs 25,850 per ten gram at the bullion market on Monday, tracking a weak trend overseas amid subdued demand from jewellers.

Silver followed suit and eased by Rs 150 to Rs 33,700 per kg on reduced offtake by industrial units and coin makers.

Traders said besides weak global cues as investors await a decision on US interest rate increase, muted demand from jewellers and retailers at the domestic spot market led to the fall in the prices of precious metals here. Globally, gold fell 0.3 per cent to USD 1,071.25 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 percent purity plunged by Rs 150 each to Rs 25,850 and Rs 25,700 per ten grams, respectively. It had climbed Rs 290 in Saturday's trade. Sovereign, however, remained flat at Rs 22,200 per piece of eight grams.

Following gold, silver ready declined by Rs 150 to Rs 33,700 per kg and weekly-based delivery by Rs 125 to Rs 33,855 per kg. However, silver coins were well maintained at last levels of Rs 48,000 for buying and Rs 49,000 for selling of 100
pieces.