Falling for the second day, gold cracked below the Rs 28,000-mark by plunging Rs 500 to over 10-month low of Rs 27,750 per 10 grams today, tracking a weak global trend.
Moreover, reduced offtake by jewellers owing to negligible demand at the domestic spot market in view of the prevailing cash crunch following demonetisation of high-value notes hit sentiment.
Silver too dipped below the Rs 40,000-mark by tumbling Rs 1,350 to Rs 39,600 per kg on poor offtake by industrial units and coin makers.
Traders said sentiment was downbeat, largely in sync with a weak global trend where gold slipped to a 10-month low as the Federal Reserve indicated it will raise interest rates faster than previously expected, boosting the US dollar and eroded the demand for the precious metal as a safe-haven.
Globally, gold price fell 1.26 per cent to $1,128.20 an ounce, and silver by 5.06 per cent to $15.95 per ounce in New York yesterday. The government on November 8 had scrapped Rs 500 and Rs 1,000 notes to flush out black money, leading to a cash crunch in the market.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged Rs 500 each to Rs 27,750 and Rs 27,600 per 10 grams, respectively — a level last seen on February 6 when it had closed at Rs 27,700.
