Gold extended its slump for the second day and shed another Rs 350 to hit a six-month low of Rs 29,000 per 10 grams in the bullion market today amid weakening global trend and considerable fall in demand from jewellers at the domestic spot market.Finance Minister Arun Jaitely said that women married can have 500 grams of gold with them. Unmarried women can have 250 grams of gold with them. A man can have 100 grams gold with him. Unaccounted gold will be taxed by the government in the near future.
Silver went below the Rs 41,000-mark, tumbling by Rs 735 to Rs 40,700 per kg on reduced offtake by industrial units and coin makers.
Traders said sentiment was downbeat, largely in keeping with a weak global trend as the dollar surged to its highest in at least a decade against a basket of currencies on strong economic data and signs that the US Fed is inching towards increasing rates, eroded the metals’ appeal as safe-haven assets.
Globally, gold fell 1.25 per cent to $1,173 an ounce in New York yesterday. Silver too dropped by 0.81 per cent to $16.48 an ounce. A falling demand from jewellers and retailers in the domestic bullion market due to paucity of funds too weighed on sentiments, traders said.
The government on November 8 had scrapped 500 and Rs 1,000 rupee notes to crack down on black money, leading to a cash crunch. “Buying activity remained at a low ebb even at prevailing levels”, said Ananth a Hyderabad based jeweler from Abids.
