Gold prices dived by Rs 300 to Rs 31,600 per ten grams, extending their slide for the third straight day at the bullion market today...

Gold prices dived by Rs 300 to Rs 31,600 per ten grams, extending their slide for the third straight day at the bullion market today, tracking a weak trend overseas amid fall in demand from local jewelers. Silver also fell further by Rs 100 to Rs 40,500 per kg due to reduced offtake by industrial units and coin makers.

Gold prices dived by Rs 300 to Rs 31,600 per ten grams

Traders said sentiment remained downbeat on the back of a weak global trend where gold fell after stronger than forecast US payrolls data boosted expectations that the Federal Reserve may press ahead with another US interest rate hike this month, lifting the dollar. Globally, gold fell 0.37 percent to USD 1,293.10 an ounce and silver 0.06 percent to USD 16.38 an ounce in New York in yesterday's trade.

Besides, fading demand from local jewelers and retailers at domestic spot market too fuelled the downtrend, they said. In the national capital, gold of 99.9 percent and 99.5 percent purity slumped further by Rs 300 each to Rs 31,600 and Rs 31,450 per ten grams, respectively. The precious metal had lost Rs 190 in last two days. Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams.

Fading demand from local jewelers and retailers

In sync with gold, silver ready declined by Rs 100 to Rs 40,500 per kg and weekly-based delivery by Rs 145 to Rs 39,535 per kg. On the other hand, silver coins continued to be traded at the previous level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.