Gold hits 14-month low, dips below 27k level

Extending its losses, gold prices today dipped below the Rs 27,000-mark by losing Rs 40 to trade at about 14-month low of Rs 26,970 per ten gram in the national capital on sustained selling by stockists amid a weak global trend.

Besides, slackened demand from jewellers too weighed on the precious metal prices. Silver also remained under pressure for the fourth straight day and slumped by Rs 1,275 to Rs 39,625 per kg on poor offtake by industrial units and coin makers.

Sentiments remained bearish as gold tumbled to an eight-month low in global markets as equities surged to a record, dampening demand for the precious metal as an alternative asset, traders said

Gold in New York, which normally determines price trend on the domestic front, fell 0.8 per cent to USD 1,216.60 an ounce and silver fell 3.6 per cent to USD 17.84 and ounce.

In addition, strengthening of rupee against the dollar that made the import of precious metals cheaper and shifting of funds toward soaring equities too influenced the sentiment, they said.

Meanwhile, the rupee edged up to end at one-week high of 60.81 against the dollar.

In Delhi, gold of 99.9 and 99.5 per cent purity declined further by Rs 40 to Rs 26,970 and Rs 26,770 per ten gram respectively, a level last seen on July 10 last year. The yellow metal had tumbled by Rs 440 in last trade. Sovereign plunged by Rs 200 to Rs 24,200 per piece of eight gram.

Silver ready nosedived by Rs 1,275 to Rs 39,625 per kg and weekly-based delivery by Rs 1,110 to Rs 39,700 per kg. The white metal had lost Rs 700 in the previous three sessions. Silver coins, however, held steady at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.