Gold price witnesses worst ever weekly rout

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.

PTI