Gold slips from 26-month high, down Rs 485 on fall in demand

New Delhi: Gold prices fell from 26-month high by plunging Rs 485 to Rs 30,400 per 10 grams at the bullion market today on considerable fall in demand from jewellers at prevailing higher levels amid profit-selling by stockists, even as the metal strengthened overseas.

However, silver continued its upward journey and advanced by Rs 90 to Rs 42,390 per kg on increased offtake by industrial units and coin makers.

Traders said slowdown in buying by jewellers at existing higher levels at domestic markets, mainly led to fall in gold prices.

Besides, some retailers selling old scrap gold further influenced the trading sentiment, they added.

They said however, a firming trend overseas, where gold surged the most since 2008 after the UK voted to exit the European Union, causing turmoil across markets and boosting haven demand, capped the fall.

Globally, gold shot up by 4.9 percent to USD 1,317.94 an ounce, after touching USD 1,358.54, the highest since March 2014 and silver by 2.6 percent to USD 17.73 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 percent purity dropped by Rs 485 each to Rs 30,400 and Rs 30,250 per ten grams, respectively.

The precious metal had surged Rs 1,215, its biggest single-day gain since August 2013 in yesterday's trade as Britain voted to exit the European Union leading to blooadbath in global equity and currency markets.

Sovereign followed suit and declined by Rs 100 to Rs 23,300 per piece of eight grams.

On the other hand, silver ready advanced by Rs 90 to Rs 42,390 per kg, while weekly based delivery fell by Rs 310 to Rs 42,150 per kg on lack of speculators buying support.

On the other hand, silver coins held steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.