Gold slumps to 10-month low... but silver adds to gains
Gold prices fell Rs 130 to hit a 10-month low of Rs 28,580 per 10 grams on Friday amid a weakening global trend and considerable fall in demand from jewellers at the domestic spot market. Silver, however, firmed up further by Rs 250 to Rs 41,850 per kg due to increased offtake by industrial units and coin makers. Traders said sentiment was downbeat, largely in step with a subdued global trend, as a surging dollar somewhat took the sheen off the precious metals as a safe haven. Besides, a decline in demand from jewellers in view of the prevailing cash crunch weighed heavy on gold prices, they said. Globally, gold fell 0.15 per cent to an ounce in Singapore. The government on Nov 8 had scrapped old series Rs 500 and Rs 1,000 notes to flush out black money, leading to a cash crunch in the market. In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 130 each to Rs 28,580 and Rs 28,430 per 10 grams, respectively a level last seen on February 9 when it had closed at Rs 28,585.