Gold falls on frantic selling, silver slumps

MUMBAI: Gold prices fell to a nearly seven months low at the bullion market here today on hectic selling from stockists and investors driven by the drop at the international market.

Silver also witnessed an massive slump to revisit 55k per kg level on consistent speculative unwinding amid subdued industrial buying.

Standard gold of 99.5 per cent purity dropped by Rs 385 per 10 gm to end at Rs 29,475 from Monday's closing level of Rs 29,860.

Pure gold of 99.9 per cent purity also dipped by a similar margin of Rs 385 per 10 gm to finish at Rs 29,610 from Rs 29,995.

Silver ready (.999 fineness) plunged by a hefty Rs 1,445 per kg to conclude at Rs 55,695 as compared to Rs 57,140 previously.

"Traders facing intense selling pressure in yellow metal amid dull demand despite marriage season as well as subdued global cues, dealers said.

"The far-below psychological Rs 30K-level, hoping to entice customers," he added.

At the global front, gold fell to six month low on investors selling following shrinking safe-haven appeal amid improving global economic outlook as well as closely watched US Federal Reserve minutes later.

In Europe, gold slid at USD 1,590.71 an ounce in early trade, while spot silver was down at USD 29.17 an ounce.