Gold prices on Thursday slumped by ₹520 to ₹31,250 per 10 gram at the bullion market tips here due to weak demand from jewellers amid weak global cues, according to the All India Sarafa Association.
Tracking gold, silver also declined by ₹520 to ₹36,171 per kg due to reduced offtake by industrial units and coin makers.
Traders said apart from subdued domestic demand, weak global cues influenced sentiment here thereby resulting in fall in gold prices.
The US Federal Reserve’s decision to hold rates also had an impact on gold prices. The Federal Open Market Committee (FOMC) continues to view sustained expansion of economic activity, strong labour market conditions, and inflation near the Committee’s symmetric 2% objective as the most likely outcomes, as per a statement by the Fed.
“In light of global economic and financial developments and muted inflation pressures, FOMC will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” it said.
Silver ready fell by Rs 825 to Rs 37,700 per kg and weekly-based delivery reduced by Rs 699 to Rs 36,374 per kg.
Silver coins, too, faced some pressure and fell by Rs 2,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.
