Gold falls on weak global cues, muted demand

Gold prices today plunged by Rs 200 to Rs 30,550 per ten gram at the bullion market, taking weak cues from overseas markets, and fall in demand from local jewellers.

Silver also dropped by Rs 600 to Rs 40,200 per kg due toreduced offtake by industrial units and coin makers.

Sentiment weakened largely in sync with a weak trendoverseas where gold slid to a seven-week low after strong USmanufacturing data strengthened the dollar and eroded appealof the precious metal as a safe haven, traders said.

Globally, gold fell 0.14 per cent to USD 1,268.70 anounce in Singapore.

In addition, fading demand from local jewellers andretailers at domestic spot market, too weighed on the prices.

In the national capital, gold of 99.9 per cent and 99.5per cent purity plunged by Rs 200 each to Rs 30,550 and Rs30,400 per 10 gram, respectively.

Sovereign however remained unaltered at Rs 24,700 perpiece of eight gram.

In line with the overall trend, silver ready drifted downby Rs 600 to Rs 40,200 per kg and weekly-based delivery by Rs455 to Rs 39,285 per kg.

Silver coins however remained flat at Rs 74,000 forbuying and Rs 75,000 for selling of 100 pieces.