Gold on Thursday recorded its steepest fall in over two months and lost Rs 800 to Rs 28,140 per 10g, on frantic selling by stockists on weak global trend and sluggish domestic demand. Gold had plunged by Rs 835 on October 5.
On similar lines, silver tumbled by Rs 3,200 to Rs 52,600 a kg, on fall in demand from industrial units and silver coin manufacturers.
Traders said selling pressure gathered momentum, as the metal in overseas markets dipped below $1,600 an ounce on a deepening euro zone debt crisis and boosting the dollar. On the domestic front, gold of 99.9 and 99.5 per cent purity took a plunge of Rs 800 each to Rs 28,140 and Rs 28,000 per 10g, respectively. Sovereigns followed suit and traded lower by Rs 100 to Rs 23,200 per piece of eight grammes.
| LOSING SHINE | |||
| Date | 15-Oct-11 | 15-Dec-11 | % Change |
| Gold ($/oz) | 1,680.73 | 1,592.74 | -5.24 |
| Gold (Rs /kg) | 26,780 | 27,685 | 3.38 |
| Silver ($/oz) | 32.21 | 29.06 | -9.77 |
| Silver (Rs /1 kg) | 53,820 | 53,075 | -1.38 |
| Source: Bloomberg, Mumbai Bullion Association Compiled by BS Research Bureau | |||
Silver also fell Rs 3,200 to Rs 52,600 a kg and weekly-based delivery by Rs 3,215 to Rs 53,200 a kg. Silver coins also dropped by Rs 3,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.
International prices
Spot gold in London rebounded on Thursday from sharp falls in the previous session on short-covering and a weak dollar, but prices were still near two-and-a-half month lows, as worries about the euro zone debt crisis led investors to remain cautious.
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The precious metal has lost nine per cent of its value this month, putting it on track for its first monthly fall since September and its weakest December since 2008, when the global credit crunch was at its worst. Spot gold was up 0.7 per cent at $1,585.89 an ounce at 1211 GMT, following its biggest one-day decline in nearly three months on Wednesday on pessimism about the euro zone and liquidation of positions by funds.
It hit a session low of $1,564.14. US gold rose 0.3 per cent to $1,591 an ounce. Spot silver dropped to $28.10, its lowest since late September, before rebounding slightly to trade at $28.85. The metal has fallen about 10 per cent so far this week, pushing the year-to-date performance into the red.