Gold Rate Today: Gold prices slump Rs 120 on low demand

NEW DELHI: Gold and silver prices plunged in domestic futures market on Wednesday on slump in demand of the bullion by local jewellers.

The MCX Gold was trading at Rs 31,815 per 10 grams, down by Rs 120, while MCX Silver was trading Rs 52 lower at Rs 38,279 a kilo around 10:30 am.

Gold inched up in global markets but gains remained capped as the US dollar held near a one-month high against its global peers.



A stronger dollar weighs on gold as the commodity becomes expensive in other currencies, causing a fall in its demand.

"For intraday, Rs 31,700 is a key support for gold, whereas an upside move above Rs 32,100 will take prices towards Rs 32,400, Reliance Commodities said in a report.

MCX Silver has an immediate support at Rs 38,020, brokerage Motilal Oswal Securities said. The brokerage advised buying on dips in the commodity, targeting a higher resistance at Rs 38,750.