Press Trust of India
New Delhi, Nov 13: Tracking a weak trend overseas and slackened demand from jewellers in domestic markets, gold prices slipped below the Rs 26,000 mark by plunging Rs 300 Friday to 3-month low of Rs 25,950 per 10 gram. Silver also slumped by Rs 500 to Rs 34,400 per kg on reduced off-take by industrial users and coin makers. Sentiments dampened after the precious metal traded near 5-year low in global market as investors sold bullion-backed funds on expectations that the US Federal Reserve will hike interest rate this year, bullion traders said.
Besides, slowdown in buying by jewellers and retailers following end of Diwali festival too weighed on sentiments, they said. Globally, gold retreated 0.4 per cent to $1,080.40 an ounce in Singapore. In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs 300 each to Rs 25,950 and Rs 25,800 per 10 grams respectively, a level last seen on August 11. The precious metal had gained Rs 140 in the previous three sessions. Sovereign also declined by Rs 100 to Rs 22,200 per piece of 8 grams.
Meanwhile, government Friday slashed import tariff value on gold and silver to $354 per 10 grams and $470 per kg respectively, tracking weakness in global markets. For the last fortnight, the tariff value on imported gold was fixed at $373 per 10 grams and on silver it was $517 per kg. The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis. The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry. At London market, spot gold prices were ruling nearly five-year low at $1,083.85 per ounce and silver rates were also down at $14.36 per ounce today. The country’s gold imports reduced to almost half in September this year to $2 billion, as against $3.783 billion in the year-ago period, as per the government data.