Gold, silver prices tumble on low demand, weak global cues

Gold prices tumbled by Rs 265 to Rs 27,000 per 10 grams at the bullion market in the national capital on Tuesday on slackened demand from jewellers and retailers at prevailing levels amid a weak global trend.

Silver also lost Rs 550 to Rs 36,350 per kg on poor offtake by industrial units and coin makers.

Gold in New York, which normally sets price trend on the domestic front, fell by 1.47 per cent to $ 1,176.70 an ounce and silver by 2.40 per cent to $15.68 an ounce in Monday's trade.

Traders said besides subdued demand from jewellers and retailers and a weak global trend where gold fell the most in more than two weeks as a slump in oil reduced the appeal of the precious metal as an inflation hedge, dampened sentiments in New Delhi.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 265 each to Rs 27,000 and Rs 26,800 per 10 grams, respectively, while sovereign continued to be enquired at last level of Rs 23,700 per piece of eight grams.

Similarly, silver ready dropped by Rs 550 to Rs 36,350 per kg and weekly-based delivery by Rs 605 to Rs 36,320 per kg.

Silver coins maintained steady trend at Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.