Gold tumbles on weak global cues, sluggish demand

New Delhi, Dec 13. Extending losses for the second straight day, gold prices fell by Rs 340 to Rs 30,700 per ten gram in the national capital today on heavy sell-off by stockists in tandem with a weak global trend. Silver also plunged by Rs 1,430 per kg on poor offtake by industrial units and coin makers. Traders said stockists selling in line with a weak global trend amid concern the Federal Reserve will reduce its bond buying as US lawmakers reached a budget agreement, reducing demand for precious metals as a safe haven. Gold in New York, which normally sets price trend on the domestic front, fell 2.6 per cent to USD 1,224.90 an ounce and silver by 4.4 per cent to USD 19.45 an ounce. Sluggish domestic demand at higher levels also dampened the sentiment to some extent, they said. On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 340 each to Rs 30,700 and Rs 30,500 per ten gram, respectively. It had lost Rs 110 yesterday. Sovereign declined by Rs 100 to Rs 25,200 per piece of eight gram. In a similar fashion, silver ready plunged by Rs 1,430 to Rs 43,630 per kg and weekly-based delivery by Rs 1,530 to Rs 44,130 per kg. The white metal had gained Rs 1,590 in the previous three sessions. Silver coins also dropped by Rs 2,000 to Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.