Gold sinks below Rs 30,000 mark, silver down by Rs 600

Sliding for the second straight day, gold dipped below the Rs 30,000-mark by losing Rs 250 to Rs 29,850 per ten grams at the bullion market on May 10, amid a subdued demand from jewellers and a weak trend overseas. Silver also dived by Rs 600 to Rs 40,600 per kg on poor offtake by industrial units and coin makers.

Marketmen said sentiment remained bearish largely in tune with a weak global trend and fading demand from jewellers and retailers at current levels at the domestic spot markets. Globally, gold plunged by 1.89 per cent to USD 1,263.40 an ounce in New York yesterday on speculation that the Federal Reserve is still on track to boost US interest rates this year.

Silver fell by 2.55 per cent to USD 16.99 an ounce. In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs 250 each to Rs 29,850 and Rs 29,700 per ten grams, respectively, a level last seen on April 28. The precious metal had lost Rs 250 yesterday.

Sovereign, however, remained steady at Rs 23,300 per piece of eight grams in limited deals. Tracking gold, silver ready dropped by Rs 600 to Rs 40,600 per kg and weekly-based by Rs 565 to Rs 40,800 per kg. On the other hand, silver coins continued to be traded at previous level of Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.