Gold price witnesses worst ever weekly rout
Mumbai: The bullion market witnessed carnage and experienced its biggest ever rout with both the precious metals - gold and silver - crashing to multi-year low on the back of devastating sell-off unleashed by panic-stricken investors and speculators amid global mayhem.
The jittery atmosphere creased by yellow metal's collapse in overseas markets after bursting of "gold bubble" mainly triggered a panic situation among domestic investors, leading to unwind their long positions heavily.
The shiny metal punctured to touch a 20-month low of Rs 25,580 per 10 grams during mid-week.
However, some stability in global market after the bloodbath alongwith modest low level seasonal buying helped the metal to regain some lost ground.
In World markets, gold prices went into a tailspin and collapsed under the impact of flash crash - the sharpest fall in the three decades to touch two-year lows and closed below the psychological USD 1,400 an ounce mark.
Short selling by large-scale speculators as well as heavy liquidation from Exchange Traded Funds (ETF) amid speculation over Cyprus and other indebted euro-zone may dump their gold reserves continued to overlap investors sentiment.
However, strong low level physical demand from Asian regions and short-covering supported the metal to some extend.
Moving in line with gold, the industrial metal also witnessed roller-coaster ride on aggressive selling.
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