Gold, silver tumble on sluggish demand, global cues

New Delhi, May 7. Both the precious metals, gold and silver tumbled in the national capital today owing to slackened demand at prevailing higher levels amid a weak global trend. While gold plunged by Rs 220 to Rs 27,650 per 10 gm, silver fell by Rs 900 to Rs 45,300 per kg on reduced offtake by jewellers and industrial units. Traders said fall in demand at prevailing higher levels and a weakening global trend on signs that physical purchases may be slowing after prices climbed to the highest since April 15 in global markets, mainly kept pressure on both gold and silver. Besides, some investors diverting their funds from weakening bullion to rising equity markets, also had negative impact on the precious metal. Gold in Singapore, which normally set price trend on the domestic front, fell by 0.7 per cent to USD 1,459.60 an ounce and silver by 1.5 per cent to USD 23.65 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 220 each to Rs 27,650 and Rs 27,450 per 10 gm, respectively. The yellow metal had gained Rs 120 yesterday. Sovereign followed suit and fell by Rs 200 to Rs 24,000 per piece of eight gram. Similarly, silver ready dropped by Rs 900 to Rs 45,300 per kg and weekly-based delivery by Rs 685 to Rs 44,630 per kg. The white metal had gained Rs 200 in the previous session. However, silver coins continued be asked around previous level of Rs 75,0000 for buying and Rs 76,000 for selling of 100 pieces.