Gold tumbles to 8-month low of Rs 8,600

Gold prices tumbled to an eight-month low at Rs 8,600 on the bullion market today on lack of buying enquiries coupled with persistent stockists offerings, triggered by fall in precious metals in global markets.

Off-marriage and festival seasons coupled with lack of industrial demand also pulled down the precious metal.

In the London market, gold was fixed lower in the morning at $644.10 per ounce as against yesterday afternoon's fixing of $647.25 an ounce.

In New York, gold and silver prices declined following higher treasury yields and more strength in the US dollar, traders said. August gold fell $5.90 to $653.10 an ounce on the Comex division.

In the local market, standard gold (99.5 purity) dropped further by Rs 40 per ten grams to Rs 8,600, a level not seen since October 13, 2006. Pure gold (99.9 purity) also fell to Rs 8,650 from Rs 8,690 yesterday.