Gold crashes on global meltdown
Gold prices plunged across the board on Friday as firmer dollar triggered panic selling and recorded a fall between Rs 270 and Rs 220 per 10 gm in the domestic market. Gold came under pressure as soon as the market opened for the day.
By TNN |
MUMBAI: Gold prices plunged across the board on Friday as firmer dollar triggered panic selling and recorded a fall between Rs 270 and Rs 220 per 10 gm in the domestic market. Gold came under pressure as soon as the market opened for the day.
The market witnessed heavy selling from stockists following reports that the yellow metal registered its biggest fall in international markets since July 20 that brought it to about $611 an ounce at one point of time. Sources said buying sentiment was further dampened with the beginning of a fortnight of sharaad period, an inauspicious period for any fresh purchase. That period lasts from September 8 to September 23.
Domestic silver also registered a similar trend, which melted between Rs 920 and Rs 435 per kg. In yellow metal, Mumbai lost the most where, standard variety (99.5) crashed by Rs 270 to finish trade at Rs 9,225 per 10 gm. In Chennai, it plunged by Rs 255 to Rs 9,380.
In Kolkata, gold dropped Rs 250 to Rs 9,410, while it fell by Rs 220 to Rs 9,430 per 10 gm in Delhi. In Mumbai, pure variety (99.9) also crashed by Rs 270 to Rs 9,275 per 10 gm. A section of marketmen said they were expected a fall in local prices when global prices lost heavily on Thursday on the back of surging dollar and low crude oil prices.
In London, spot gold fell nearly 2% to a six-week low of $606.20 an ounce, before finishing the trade at $608.8/609.8. The metal was traded at $617.5/618.5 in New York on Thursday. In white metal, spot silver (.999) suffered the most in Chennai, where it crashed by Rs 920 to Rs 19,370.
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In Delhi, ready silver plunged by Rs 850 to close at Rs 19,000 on fresh bout of selling. In Kolkata, spot silver lost heavily as stockists took profit and plummeted by Rs 500 to Rs 19,100, while the metal drifted lower By Rs 405 to Rs 19,595 per kg in Mumbai on similar ground. In London, spot silver followed gold and fell 5% to $11.94 an ounce, the lowest since August 29. It closed at 12.08/12.15 an ounce, compared with $12.56/12.63 in the US market on Thursday.
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