Gold, silver plunge on weak global cues, low demand

New Delhi: Snapping its three-day rising streak, gold prices retreated by Rs 285 to Rs 27,190 per 10 grams at the bullion market on May 1 amid a weak trend overseas and subdued demand from jewellers at current levels. Silver prices also dropped by Rs 700 to Rs 36,700 per kg due to reduced offtake by industrial units and coin makers.

Bullion traders said sentiments turned bearish on weak global trend where gold extended the biggest loss in almost eight weeks after a report showed applications for US jobless benefits declined last week to the lowest in 15 years, boosting speculation that the Federal Reserve may raise interest rates sooner than expected.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 per cent to USD 1,180.78 an ounce. Besides, easing demand from jewellers and retailers at existing levels dampened the sentiment, they said. In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs 285 each to Rs 27,190 and Rs 27,040 per 10 grams, respectively.

The metal had gained Rs 425 in previous three sessions. The Sovereign, however, held steady at Rs 23,700 per piece of eight grams in limited deals. Following gold, silver ready dropped by Rs 700 to Rs 36,700 per kg and weekly-based delivery by Rs 945 to Rs 36,515 per kg. Silver coins followed suit and plummeted by Rs 1,000 to Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.