Gold falls by Rs230 on weak global cues, scrap sale

Gold prices today tumbled by Rs230 to Rs16,700 per 10 gm in the bullion market here due to sustained selling by stockists driven by weak global cues.

Silver fell by Rs650 to Rs27,550 per kg.

Prices plunged as stockists sold the precious metal, which in Asian regions heads for the biggest weekly slump on dollar’s gain and dipped below 1,100 dollars an ounce, marketmen said.

Gold in Singapore dropped to 1,088.65 dollars an ounce as the dollar advanced to its highest in almost five months and equities fell on US banking reform plans and the prospect of slower growth in China.

Increased selling of scrap jewellery by retailers at existing higher levels also pulled down the prices, they said.

Standard gold and ornaments dropped by Rs230 each to Rs16,700 and Rs16,550 per 10 gm respectively. Sovereign fell by Rs50 to Rs14,000 per piece of 8 gm.

Silver ready fell by Rs650 to Rs27,550 per kg. Silver for weekly-based delivery lost Rs590 to Rs27,210 per kg.

Silver coins declined by Rs100 to Rs33,500 for buying, and Rs33,600 for selling of 100 pieces on heavy selling by stockists amid restricted buying by retailers.

The coins, which are mainly used as gift items and offered to god in prayers, saw poor demand due to existing higher levels.