Gold slumps by Rs 430 on muted demand, weak global cues

New Delhi: Gold prices dived by Rs 430 to Rs 32,020 per 10 gram at the bullion market on Wednesday, tracking a weak trend overseas amid fall in demand from local jewellers.

Silver followed suit and lost Rs 250 to Rs 40,650 per kg due to reduced offtake by industrial units and coin makers.

Gold weakened as it fell below the USD 1,300 an ounce level to trade at this year's lowest level of USD 1,290.30 an ounce in New York yesterday on surging US bond yields and a stronger dollar. Silver too fell by 1.52 percent to USD 16.24 an ounce.

Besides, fall in demand from local jewellers and retailers at current levels too weighed on the prices, traders said.

In the national capital, gold of 99.9 percent and 99.5 percent purity plunged by Rs 430 each to Rs 32,020 and Rs 31,870 per ten gram, respectively. It had gained Rs 165 in yesterday's trade.

Sovereign however remained unaltered at Rs 24,800 per piece of eight gram.

In line with overall trend, silver ready fell by Rs 250 to Rs 40,650 per kg and weekly-based delivery by Rs 190 to Rs 39,850 per kg.

On the other hand, silver coins were unaltered at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.