Gold tanks to multi-month low, silver also sinks

October 31, 2014

Mumbai-India (Oct 31)  Gold suffered its biggest fall in over 15 months and closed below the key Rs.26,000-per 10 grams mark at the domestic bullion market here on Friday on the back of massive selling from speculative traders and stockists.

Silver too plunged sharply to hit a four-year low due to panic unwinding by investors coupled with sluggish industrial demand.

Standard gold (99.5 purity) plummeted by Rs.620 to end at Rs.25,960 per 10 grams against Thursday’s closing level of Rs.26,580.

Pure gold (99.9 purity) also tanked by a similar margin to settle at Rs.26,105 per 10 grams against Rs.26,725.

Silver (.999 fineness) nosedived by a whopping Rs.1,300 to end at Rs.37,035 a kg against Rs.38,335 on Thursday.

Domestic sentiment turned bearish and highly volatile after the shiny metal tanked to the lowest levels since 2010 in worldwide trade following strong U.S. economic data amid heightened speculation over an early rate hike a day after the Federal Reserve ended its historic monthly bond-buying plan. On the global front, spot gold was trading sharply lower at $1,165.80 an ounce in early European trade, while silver dropped to $15.88 an ounce.

In Delhi, gold prices plunged by Rs.600 to Rs.26,500 per 10 grams. Subdued demand from jewellers and retailers following end of festive season and shifting of funds towards soaring equity markets, weighed on prices of the precious metal. Silver followed suit and recorded a sharp fall of Rs.1,700 to Rs.36,150 a kg on poor offtake by industrial units and coin makers.

Tracking weak global trend, in futures trade, gold prices plunged by 2.08 per cent to Rs.26,248 per ten grams on Friday as speculators indulged in reducing positionss

Source:  TheHindu-in

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