Gold down by Rs 600, silver sheds Rs 1,800 on global cues
Both gold and silver tumbled in the bullion market on Monday due to heavy selling by stockists on reduced offtake at existing higher levels, triggered by a weak trend in overseas markets.business Updated: Aug 29, 2011 15:29 IST
Both gold and silver tumbled in the bullion market on Monday due to heavy selling by stockists on reduced offtake at existing higher levels, triggered by a weak trend in overseas markets.
Gold plunged by Rs 600 to Rs 27,490 per 10 grams, while silver lost Rs 1,800 to Rs 62,800 per kg.
Dealers said trading sentiment turned bearish after gold declined in the global markets as the US Federal Reserve chairman Ben S Bernanke said growth will resume. It boosted speculation that the central bank may not add more stimulus, which eroded the metal's appeal as a safe haven.
Besides sluggish demand at prevailing high levels, investors were seen shifting their funds from bullion to rising equity, which also influenced the trading sentiment, market analysts said.
Gold in global markets, which normally sets the price trend on the domestic front, traded 0.9% lower at $1,812 an ounce.
On the domestic front, gold of 99.9 and 99.5% purity tumbled by Rs 600 each to Rs 27,490 and Rs 27,340 per 10 grams, respectively.
The metal had gained Rs 950 in the previous trading session.
Sovereign remained steady at Rs 22,400 per piece of eight grams in limited deals.
Silver ready plummeted by Rs 1,800 to Rs 62,800 per kg and weekly-based delivery was down by Rs 1,870 to Rs 62,030 per kg.
Silver coins also fell by Rs 2,500 to Rs 69,500 for buying and Rs 70,500 for selling of 100 pieces.