Gold falls Rs 250; silver plunges by Rs 825

New Delhi, May 2 Gold costs Thursday drooped by Rs 250 to Rs 32,620 for each 10 gram at the bullion market here due to weak demand from jewellers amid weak global cues, according to the All India Sarafa Association.

Tracking gold, silver also declined by Rs 825 to Rs 37,700 for each kg because of diminished offtake by modern units and coin makers.

Traders said apart from subdued domestic demand, weak global cues influenced sentiment here thereby resulting in fall in gold prices.

The US Federal Reserve's decision to hold rates also affected gold costs.

The Federal Open Market Committee (FOMC) keeps on review continued extension of financial action, solid work economic situations, and inflation near the Committee's symmetric two per cent objective as the most likely outcomes, as per a statement by the Fed.

"In light of worldwide monetary and money related advancements and quieted expansion weights, FOMC will be tolerant as it figures out what future changes in accordance with the objective range for the government subsidizes rate might be proper to help these results," it said.

All around, spot gold was trading lower at USD 1,271.50 an ounce, while silver was down at USD 14.72 an ounce in New York.

In the national capital, gold of 99.9 percent and 99.5 percent virtue declined by Rs 250 each to Rs 32,620 and Rs 32,450 for every 10 gram, respectively.

However, sovereign gold held steady at Rs 26,400 per eight gram.

Silver ready fell by Rs 825 to Rs 37,700 per kg and weekly-based delivery reduced by Rs 699 to Rs 36,374 per kg.

Silver coins, too, faced some pressure and fell by Rs 2,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.