Gold tumbles on heavy selling, stronger rupee

Gold prices tumbled below the psychologically significant Rs 27,000-mark at the domestic bullion market here following heavy sell-off by speculative traders and stockists in the face of global volatility.
Elsewhere, silver also dropped on the back of reduced offtake from consuming industries.
Strong recovery in equities along with strengthening of the rupee against the American currency, further dampened the sentiment, a bullion trader said.
The rupee ended at nearly four-week high of 62.67 against the US Dollar.
Standard gold (99.5 purity) slumped by Rs 305 to end at Rs 26,785 per 10 grams from Wednesday's closing level of Rs 27,180.

Pure gold (99.9 purity) also drifted by a similar margin to finish at Rs 26,935 per 10 grams compared with Rs 27,240 previously.

Silver (.999 fineness) fell by Rs 350 to conclude at Rs 37,420 per kg as against Rs 37,770 yesterday.
In worldwide trade, the yellow-metal remained under intense selling pressure on robust US macro data after data showed the trade deficit fell to an 11-month low in November as well as strong dollar.
Spot gold was bid lower at USD 1,208.00 an ounce in early European trading after hitting a session low of USD 1,205.