Gold prices plummeted by Rs. 300 to trade at over two-year low of Rs. 25,700 per 10 grams at the bullion market on Monday tracking a weak global trend amid slump in demand from jewellers and retailers.
Silver also fell further by Rs. 150 to Rs. 34,200 per kg on lack of buying support from industrial users and coin makers.
Bullion merchants attributed the steep fall to a weak global trend where it crashed to the lowest level in over five years amid prospects for higher US interest rates which dragged gold prices to this year’s lowest level in the national capital.
Besides, muted demand from jewellers at domestic spot markets and reports of larger-than-usual sell-off in China, world’s top consumer of gold, weighed on the gold prices, they said.
Gold in Singapore, which normally determines price trend on the domestic front, lost 4.2 per cent to USD 1,086.18 an ounce, the lowest price since March 2010 and silver 2.3 per cent to USD 14.54 an ounce, the lowest since December 2014.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs. 300 each to Rs. 25,700 and Rs. 25,550 per 10 grams respectively, a level last seen in June 2013.
Sovereign followed suit and fell by Rs. 200 at Rs. 22,700 per piece of eight grams.
Tracking gold, silver ready fell by Rs. 150 to Rs. 34,200 per kg and weekly-based delivery by Rs. 600 to Rs. 33,600 per kg.
Silver coins nosedived by Rs. 1,000 to Rs. 49,000 for buying and Rs. 50,000 for selling of 100 pieces.