Gold plunges Rs 1,100, silver plummets Rs 2,200

New Delhi: Gold prices plunged by Rs1,100 to Rs71,700 per 10 grams in the national capital on Tuesday due to weak demand from jewellers. The precious metal had closed at Rs72,800 per 10 grams in the previous session.

Silver also continued its slide for the fourth session, plummeting by Rs2,200 to Rs82,000 per kg on Tuesday from Rs84,200 per kg in the previous trade, according to the All India Sarafa Association. Silver prices have fallen by Rs4,200 per kg in the four sessions since August 2 when it traded at Rs86,000 per kg. In addition, gold of 99.5 per cent purity dived Rs1,100 to Rs71,350 per 10 grams from Monday’s closing at Rs72,450 per 10 grams.

Traders said gold prices dropped due to reduced demand from jewellers and retail buyers.

According to Dilip Parmar, Research Analyst at HDFC Securities, the weakness in the rupee and physical demand ahead of the festive season is expected to support domestic gold prices.