US rate hike talk:Gold slips below ₹31,000, silver dives too
- Gold dropped as much as ₹730 - its biggest fall since June.
- Globally, gold dropped by 3.26% to settle at $1,268.40 an ounce.
Gold cracked as much as ₹730 -- its biggest one-day fall this year -- to ₹30,520 per 10 grams, in sync with a weak trend overseas on growing US rate hike buzz amid a fall in demand at the spot market.
Silver followed suit and dropped below the ₹44,000 level by falling ₹1,750 to ₹43,250 per kg.
Sentiment took a hit after gold fell below the $1,300 an ounce for the first time since June in the global market amid mounting concern that an improving US economy will prompt the Fed to raise rate soon, boosting the dollar and taking the sheen off the safe haven appeal of the metal, traders said.
Globally, gold dropped by 3.26% to settle at $1,268.40 an ounce in New York on Tuesday. Silver too retreated 5.38% to $17.78 an ounce.
In the national capital, gold of 99.9% and 99.5% purity tumbled by ₹730 each to ₹30,520 and ₹30,370 per 10 grams, respectively. This is the lowest closing since July 18. The precious metal had gained ₹50 on Tuesday.
Sovereign fell ₹150 to ₹24,350 per piece of eight grams.
Tracking gold, silver recorded a steep fall of₹1,750 to ₹43,250 per kg and weekly-based delivery by ₹1,975 to ₹43,060 per kg.
Silver coins plummeted by ₹3,000 to ₹74,000 for buying and ₹75,000 for selling of 100 pieces.