Gold plunges on stockists selling, weak global cues

New Delhi, Mar 24. Gold plunged by Rs 150 to Rs 30,200 per ten grams in the national capital today on selling by stockists against fall in demand amid a weak global trend. Silver continued to slide for the sixth straight day by losing Rs 400 to Rs 44,550 per kg on poor offtake by industrial units and coin makers. The metal had lost Rs 2,250 in last five sessions. Traders said sentiments in gold turned bearish after it plunged in overseas markets on speculation that US interest rates will increase next year, curbing demand for the metal as a store of value. Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.7 per cent to USD 1,325.05 an ounce and silver by 1.1 per cent to USD 20.10 an ounce. Shifting of funds from weakening bullion to rising equities and strengthening rupee against the US dollar also influenced the sentiment, they said. On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 150 each to Rs 30,200 and Rs 30,000 per ten grams, respectively. It had gained Rs 20 in last trade. Sovereign followed suit and declined by Rs 50 to Rs 25,200 per piece of eight grams. Silver coins, however, held steady at Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.