Gold plunges on increased stockists selling, weak global cues

New Delhi: Gold prices declined by Rs 180 to Rs 27,220 per 10 gram in the national capital on increased selling by stockists, triggered by a weakening global trend where it tumbled to four-month low. Silver, however, held steady at Rs 40,350 per kg.

Traders said persistent selling by stockists was triggered by a weakening global trend where gold tumbled to the lowest level since February as hedge funds pared bets on a rally in the metal as haven demand waned. Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.7 per cent to USD 1,241.11 an ounce, the lowest since February 3 and silver by 0.7 per cent to USD 18.69 an ounce. In Delhi, gold of 99.9 and 99.5 per cent purity plunged Rs 180 each to Rs 27,220 and Rs 27,020 per 10 gram, a fresh 11-month low, while sovereign lost Rs 200 to Rs 24,400 per piece of eight gram.

On the other hand, silver ready held steady at Rs 40,350 per kg on scattered support, while weekly-based delivery shed Rs 90 to Rs 39,500 per kg. Silver coins dropped by Rs 2,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces. Meanwhile, government today slashed import tariff value on gold and silver to USD 408 per 10 gram and USD 617 per kg, respectively, in view of weakness in bullion prices globally.