Gold loses; silver below Rs 39k-mark

Gold prices plunged by Rs 200 to Rs 29,420 per 10 gram at the bullion market on Saturday in line with a weak trend overseas amid a fall in local demand.

Silver followed suit and slipped below the Rs 39,000 level by tumbling Rs 825 to Rs 38,325 per kg due to reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers at domestic spot market, mainly pulled down the prices. Globally, gold fell 0.75% to $1,258.40 an ounce in New York in Friday’s trade.

Besides, an appreciating rupee against the dollar made imports cheaper, weighing on the prices, they said. The rupee closed at a fresh two-year high of 63.58 against the dollar at the forex market. In addition, a fading demand from local jewellers and retailers too fuelled the down trend, they added.

In the national capital, gold of 99.9% and 99.5% purity plunged by Rs 200 each to Rs 29,420 and Rs 29,270 per 10 gram, respectively. It had gained Rs 190 on Friday. Sovereign, however, remained unaltered at Rs 24,500 per piece of eight gram in limited deals.