Gold hits 5-month low, loses another Rs 250 on global cues

New Delhi, July 18

Gold prices on Wednesday tumbled by Rs 250 to trade at over five-month low of Rs 30,800 per 10 grams at the bullion market amid weakening global trend and considerable fall in demand from local jewellers.

Silver followed suit and dropped by Rs 620 to Rs 39,200 per kg on poor offtake by industrial units and coin-makers.

Traders said sentiment was downbeat as gold prices slipped to their lowest in a year in global markets, as the dollar firmed after Federal Reserve Chairman Jerome Powell’s US economic outlook reinforced views that the central bank is on track to steadily hike interest rates, eroding appeal of the precious metal.

Globally, gold fell 0.32 per cent to USD 1,223.30 an ounce and silver by 0.84 per cent to USD 15.41 an ounce in Singapore.

Besides, muted demand from local jewellers and retailers at domestic spot markets too weighed on prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 250 each to Rs 30,800 and Rs 30,650 per 10 grams, respectively, a level last seen on February 8, 2018.

The precious metal had lost Rs 100 on Tuesday.

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

Following gold, silver ready dropped by Rs 620 to Rs 39,200 per kg and weekly-based delivery by Rs 690 to Rs 38,290 per kg.

Silver coins, on the other side, were unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces in scattered deals. PTI