Gold dips below Rs 27,000; hits over 2-week low on global cues

New Delhi: Tracking a weak trend overseas and slackened demand from jewellers, gold prices slipped below the Rs 27,000-mark by plunging Rs 245 to trade at over two-week low of Rs 26,830 per 10 grams at the bullion market.

Silver also cracked below Rs 37,000 by falling Rs 735 to Rs 36,630 per kg on reduced offtake by industrial units and coin makers. Sentiments dampened after the precious metal held at three-week low in global market as investors assessed the strength of the US economy, with bets rising that the Federal Reserve will start to hike interest rates from December, traders said.

Globally, gold fell 0.88 per cent to USD 1,145.50 an ounce and silver lost 2.23 per cent to USD 15.58 an ounce in New York on October 29. Besides, sluggish demand from jewellers and retailers dampened the sentiment, they said. In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 245 each to Rs 26,830 and Rs 26,680 per 10 grams, respectively, a level last seen on October 13. It had lost Rs 190 on October 29.

Sovereign, however, remained flat at Rs 22,400 per piece of eight grams in limited deals. Silver ready dropped by Rs 735 to Rs 36,630 per kg and weekly-based delivery by Rs 690 to Rs 36,550 per kg. Silver coins also slumped by Rs 1,000 at Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.