A leading business daily reported decline in sale of the precious yellow metal to half during this year's Navratra and Dusshera festivities due to fear of taxmen's increased scrutiny. Correspondingly, lower or muted demand from jewelers pushed the value of gold down even as the metal gained in price in the overseas market.
In the bullion market, gold dropped in price to Rs. 30,375 per 10 gram, registering a drop of Rs. 225. Silver also lost in value to Rs. 40000 per kg on the back of reduced demand from industrial units and coin manufacturers.
The fall has been mainly attributed to reduced demand from local retailers and jeweler association in the spot market which was capped due to firm trend in the international gold market where it gained in price to reach levels of $1,275.40 an ounce
In the national capital region, the metal of 99.9% and 99.5% purity dropped in price by Rs. 225 on each to Rs. 30,375 and Rs. 30, 225 per 10 gm respectively.
With Inputs from PTI