Gold nosedives in Mumbai

Gold prices tumbled by Rs 905 per 10 grams to Rs 12,075 on the bullion market here on Thursday on persistent selling pressure from stockists triggered by sharp fall in global markets. Silver ready also dropped by Rs 2,025 a kg to Rs 22,890 from Rs 24,915 yesterday.

In London, spot gold came under pressure as the dollar traded at a week's high against the euro following the US Federal Reserve rate cut this week. Gold was fixed lower in the morning at $913.50 an ounce as against $958.50 an ounce previously.

In the local market, standard gold (99.5 purity) dropped by Rs 905 per 10 grams to Rs 12,075 from Rs 12,980 previously while pure gold (99.9 purity) fell to Rs 12,135 from Rs 13,035 per 10 grams previously.