Gold tumbles by Rs. 625 on sluggish demand, global cues

[Editor: This kind of minor fall does not matter, as the price of Gold is still above Rs.30, 000  per ten grams. Also, with the festive season having started from today, with the Ganesh Chaturthi, the price of the metal is expected to remain buoyant. However, instead of directly playing with the god, you can go for Gold Loan companies, as some norms are expected to be relaxed under the new governor of the RBI, in order to boost the demand for credit. CLICK HERE]

Gold prices tumbled by Rs. 625 to Rs. 31,100 per ten grams on Monday on sluggish demand at prevailing higher levels amid a weak global trend. 

However, silver held steady at Rs. 54,300 per kg in scattered buying from industrial units and coin make trade sluggish demand at prevailing higher levels amid a weak global trend on speculation Federal Reserve policy make will reduce monthly debt purchases this month, mainly pulled down gold prices. 

Gold in London, which normally set price trend on the domestic front, fell 0.3 per cent to USD 1,387.24 an ounce and silver by 0.3 per cent to USD 23.78 an ounce. 

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs. 625 each to Rs. 31,100 and Rs. 30,900 per ten ten grams, respectively. It had gained Rs. 725 in the previous session. Sovereign held steady at Rs. 25,200 per piece of eight gram. 

On the other hand, silver ready ruled steady at Rs. 54,300 per kg while weekly-based delivery shed Rs. 35 at Rs. 54,895 per kg. Silver coins continued to be asked around previous level of Rs. 88,000 for buying and Rs. 89,000 for selling of 100 pieces. 

Courtesy: The Hindu Business Line