Friday 21 December 2012

News Hour: Gold plunges to six-week low to below Rs 31K level


Gold prices plunged to a six-week low by losing Rs 330 to Rs 30,870 per 10 gm on heavy selling by stockists triggered by a meltdown in global markets
NEW DELHI: Gold prices plunged to a six-week low by losing Rs 330 to Rs 30,870 per 10 gm in the national capital today on heavy selling by stockists triggered by a meltdown in global markets. 

Traders said sentiments turned bearish after gold became a worst performer in six months in overseasmarkets as the struggle by US lawmakers to reach a budget deal strengthened the dollar and reduced demand for the metal as an alternate investment.

Also read: Don't go overboard with your investments in glittering gold 

Gold in global markets, which normally set price trend on the domestic front, fell by 0.7 per cent to $ 1,635.80 an ounce, the lowest price since August 22 and silverby 1.1 per cent to $29.64, cheapest since August 22 in Singapore. 

Besides, sluggish domestic demand due to ending of marriage season further fuelled the downtrend, they said. 

Silver followed suit and dropped by Rs 1,550 to Rs 57,750 per kg on poor demand from industrial units and coin makers. 

On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 330 each to Rs 30,870 and Rs 30,670 per 10 gm, respectively, the levels last seen on November 4. Sovereign also fell by Rs 100 to Rs 25,400 per piece of eight gram. 

Similarly, silver ready dropped by Rs 1,550 to Rs 57,750 per kg and weekly-based delivery by Rs 2,085 to Rs 57,715 per kg. Silver coins lost Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.

(Source: economictimes.indiatimes.com)

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