Gold loses sheen, down Rs 275 on weak demand

New Delhi: Gold prices plunged by Rs 275 to Rs 30,275 per 10 grams at the bullion market on Friday, tracking a weak trend overseas amid muted demand from local jewellers.

Silver followed suit and slumped below the Rs 40,000-mark by falling Rs 525 to Rs 39,925 per kg on reduced offtake by industrial units and coin makers.

Traders said sentiment turned bearish on weak global cues as the US dollar strengthened against a basket of major currencies on the European Central Bank extending its bond- buying programme.

Globally, gold fell 0.04 per cent to USD 1,265.70 an ounce and silver by 0.42 per cent to USD 16.70 an ounce in Singapore.

Fading demand from local jewellers and retailers at domestic spot market also weighed on prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity tumbled by Rs 275 each to Rs 30,275 and Rs 30,125 per 10 grams. The prices had risen by Rs 50 on Thursday.

Sovereign, however, remained flat at Rs 24,700 per piece of eight grams.

Following gold, silver ready drifted further down by Rs 525 to Rs 39,925 per kg and weekly-based delivery by Rs 445 to Rs 39,170 per kg.

However, silver coins continued to be traded at previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.