Gold, silver tumble on fall in demand, weak global cues

New Delhi: Snapping its three-day rising streak, gold prices tumbled by Rs 440 to Rs 27,030 per ten gram in the national capital following fall in demand at existing higher levels amidst a weak global trend.

Silver followed suit and eased by Rs 450 to Rs 38,200 per kg on poor offtake by industrial units and coin makers. The market remained closed on Thursday and Friday on account of 'Mahatma Gandhi Jayanti' and 'Dussehra', respectively. Traders said fall in demand at prevailing higher levels and a weakening trend global market pulled down gold and silver prices. Globally, gold in New York, which normally sets price trend on the domestic front, fell two per cent to USD 1,190.30 an ounce, the lowest since December 31 after US employers added more jobs in September than forecast, stoking speculation that the Federal Reserve will move closer to raising interest rates.

Silver also fell 1.3 per cent to USD 16.82 an ounce on the Comex, after touching USD 16.64, the lowest since March 2010. In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 440 each to Rs 27,030 and Rs 26,830 per ten gram, respectively. It had gained Rs 240 in the previous three sessions. Sovereign followed suit and shed Rs 100 at Rs 24,100 per piece of eight gram. Silver ready dropped further by Rs 450 to Rs 38,200 per kg and weekly-based delivery by Rs 285 to Rs 37,885 per kg.

Silver coins also nosedived by Rs 2,000 to Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.