Gold hits 2-week low, global cues, subdued demand

Source: PTI

Gold continued to head downhill to trade at a 2-week low of Rs.30,550 per 10 grams by plunging Rs.200 on Monday, in sync with a weak global market.

Demand from jewellers at the domestic market remained soft, which kept the prices lower.

Silver declined Rs.240 at Rs.46,260 per kg due to reduced off-take by industrial units and coin makers.

Overseas, gold turned weaker after data on Friday showed the US economy gaining traction, raising bets that the Federal Reserve may increase interest rates this year. This diminished its demand as a safe haven, which weighed on sentiment here, traders said.

Globally, gold traded 1% lower at $1,323.83 an ounce in Singapore.

In the national capital, gold of 99.9% and 99.5% purity slumped by Rs.200 each to Rs.30,550 and Rs.30,400 per 10 grams, respectively, a level last seen on July 2.

The precious metals had shed Rs.50 in Saturday's trade.

Sovereign, however, remained steady at Rs.23,400 per piece of 8 grams.

Following gold, silver ready fell Rs 200 to Rs.46,260 per kg and weekly-based delivery cracked below Rs.47,000-mark by losing Rs.345 to Rs.46,930 per kg.

In line with the overall movement, silver coins plummeted by Rs.1,000 to Rs.73,000 for buying and Rs.74,000 for selling of 100 pieces.