Gold extends downslide; logs weekly loss of Rs 1,250 per 10 gm
New Delhi: Gold prices tumbling to 20-month low was the feature of trading in the national capital during the past week on heavy sell-off by stockists driven by the steepest fall in three-decade in global market. However, a fag-end recovery trimmed the losses.
After the biggest single-day fall of Rs 1,250 last Saturday, gold rolled down further to touch Rs 26,350 per 10 grams, its lowest level since August 16, 2011 as stockists and speculators indulged in reducing their positions.
Selling pressure sparked as the precious metal suffered biggest loss since 1983 in world markets on speculation that Cyprus central bank might lead other European countries in selling gold from its reserves to revive economy.
The weak trend further fuelled panic as speculators and investors indulged in off-loading their positions in bullion to shift their funds to rising equity and forex markets for a safe haven.
Gold in overseas markets, which normally set price trend on the domestic front, dropped to USD 1,321.95 an ounce on April 16, a biggest slump in three-decades.
However, a fag-end recovery in overseas markets advised speculators to wind up their pending short positions created in the recent bear phase and retail customers taking advantage at lower levels, pulled back the prices only to minimise the losses.
As the trading focus was more confined to gold, silver lacked necessary follow up support and continued to decline throughout the week and recorded heavy losses.
Market remained closed on Friday on account of "Ram Navami" festival.
Meanwhile, government further slashed the tariff value of gold and silver to USD 449 per 10 grams and USD 762 per kg, respectively, in view of falling global prices.
In the national capital, gold of 99.9 and 99.5 percent purity commenced with heavy losses and tumbled to Rs 26,350 and Rs 26,150 per 10 grams.
Sovereign followed suit and plunged by Rs 800 to Rs 24,000 per piece of eight gram.
In line with a general weak trend, silver ready suffered a setback of Rs 4800 and weekly-based delivery by Rs 5480 to Rs 43,300 per kg on heavy selling throughout the week. Silver coins also tumbled by Rs 2000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.