Gold plummets 3.1% in worst single-day fall since Nov 2015 on margin woes

Retail buyers stay away despite price fall; Silver sheds 5%

Gold, which emerged as a safe haven in the last few months, plunged on Friday even as equities rebounded sharply after a steep fall. 

During this week, gold fell more than Rs 3,000 per 10 gram while silver shaved off over Rs 4,000 per kg. Investors encashed gold to pay for margin shortfalls or losses in other asset classes.

Traders, who made profit in the gold bull run this year, including international institutional investors, have booked profit either to have cash or forcibly sold it to meet margin shortfall or loss in other assets.

Gold price in Mumbai’s physical market