Gold slumps to 1-month low on global crash; silver also sinks
Mumbai: Gold prices hit one-month lows at the bullion market Wednesday on sustained selling from stockists and investors in the backdrop of a crash in global market, while silver hit two-and-a-half-year low.
Silver plunged to Rs 40,475 per kg, a level not seen since November 17, 2010, owing to heavy speculative offloading coupled with lack of industrial buying.
Standard gold of 99.5 percent purity nosedived by Rs 680 to close at Rs 26,145 per 10 gm from Tuesday's closing level of Rs 26,825.
Pure gold of 99.9 percent purity tanked by Rs 685 to conclude at Rs 26,280 per 10 gm from Rs 26,965 Tuesday.
Silver ready (.999 fineness) plummeted by a hefty Rs 1,695 to end at Rs 40,475 per kg from Rs 42,170 previously.
In Europe, gold fell near three-year lows following investor offloading amid positive US economic data and rising dollar, which heightened fears that the Federal Reserve may soon end its ultra-loose monetary policy.
"Demand for gold is sluggish due to marriage off- season and nervousness among investors. Even the sharp drop in rupee value against the dollar is not supporting the precious metal," a dealer said.
In London, spot gold tumbled to its lowest level since August 2010 at USD 1,223.54 an ounce in early trade and silver also fell to USD 18.56 an ounce.