A divergent trend developed in the bullion market on Thursday as silver plunged by Rs 1,500 to Rs 56,000 a kg on selling by stockists and gold recovered by Rs 120 to Rs 22,820 per 10 gm.
Gold gained on fresh buying by retailers for the ongoing marriage season and wiped off most of the previous day’s losses. Silver coins followed suit and nose-dived by Rs 4,500 to Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.
On the domestic front, silver ready tumbled further by Rs 1,500 to Rs 56,000 a kg. It had lost Rs 800 yesterday. Silver weekly-based delivery moved down by Rs 1,490 to Rs 56,000 a kg, after losing Rs 810 in the last trading session.
On the other hand, the gold of 99.9 and 99.5 per cent purity bounced back by Rs 120 each to Rs 22,820 and Rs 22,700 per 10 gm, respectively. The yellow metal had lost Rs 170 in the previous session. Sovereigns continued to be asked around the previous level of Rs 18,700 per piece of eight grams in restricted buying.
In London, gold rose for a second day on Thursday, nearing one-month highs, as concerns grew about the outlook for the US economy and the dollar weakened.
Fears mounted the U.S. economy may be running out of steam as data showed companies had hired far fewer workers than expected in May and that output in the manufacturing sector hit its lowest level since 2009.
Spot gold rose 0.2 per cent to $1,542.89 an ounce, having hit $1,550.14 on Wednesday, its highest since May 3. US gold was flat at $1,544.40, while euro-priced gold fell by nearly 0.9 per cent on the day to 1,066.11 euros an ounce.