Gold prices plunge on fall in demand, global cues

After Wednesday's rise, gold prices drifted by Rs 190 to close at Rs 27,610 per ten gram in the national capital on Thursday on easing demand from jewellers and retailers amidst a weak global trend.

Bullion traders said besides fall in demand, ongoing "Sharads", an inauspicious fortnight in Hindu mythology for making fresh purchases, mainly pulled down the precious metals.

Traders said weak global trend where gold traded at almost three-month low as strengthening dollar reduced demand for the bullion as an alternative investment amid easing tensions in Ukraine, also dampened the sentiment.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 per cent to US $1,246.53 an ounce and silver by 0.3 per cent to US $18.91 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 190 each to Rs 27,610 and Rs 27,410 per ten gram respectively. It had gained Rs 200 yesterday.

Sovereign, however, continued to be traded at last level of Rs 24,500 per piece of eight gram in limited deals.

Silver also declined by Rs 270 to Rs 41,900 per kg due to slackened demand from industrial units. Silver ready fell by Rs 270 to Rs 41,900 per kg and weekly-based delivery by Rs 310 to Rs 41,890 per kg.

On the other hand, silver coins spurted by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.