Gold down by Rs 440, silver by Rs 980 on fresh selling

New Delhi, Jun 1. Both precious metals, gold and silver tumbled on the bullion market today on stockists selling in the face of sluggish demand at higher levels amid a weakening global trend. While gold plunged by 440 to Rs 27,350 per 10 grams, silver dropped by Rs 980 to Rs 44,140 per kg on lack of buying by industrial units and coin makers. Marketmen said stockists indulged in reducing their holdings driven by a weak global trend while demand from retailers declined at higher levels following three days of gains. Gold in overseas markets slumped the most in two weeks as US consumer confidence climbed in May to the highest in almost six years, stoking concern that the Federal Reserve may scale back monetary stimulus. Gold in New York, which normally sets the price trend on the domestic front, dropped by USD 25.40 to USD 1,388.30 an ounce, while silver declined by 2.24 per cent to USD 22.27 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 440 each to Rs 27,350 and Rs 27,150 per 10 grams, respectively. Sovereigns rose by Rs 100 to Rs 24,000 per piece of eight grams. With the general weakening trend, silver ready dropped by Rs 980 to Rs 44,120 per kg and weekly-based delivery by Rs 1,060 to Rs 43,500 per kg. However, silver coins held unchanged at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.