Gold loses Rs 255 on global meltdown

MUMBAI: In line with global trend, domestic gold prices slumped to its lowest in more than three weeks on Friday on panic selling. A section of marketmen feels that lower price will attract physical buyers and jewellers as the festive season approaches fast. Market sentiment was still optimistic on hopes that funds and investors might return to purchase at attractive low levels.

In overseas market, the yellow metal tanked to their lowest level since late July in choppy trade on speculative selling and fund liquidation.

Back home, Delhi lost the most, where standard gold (99.5) plunged by Rs 255 at to touch Rs 9,450 per 10 gm. Such meltdown in gold prices was last seen on February 8, when it crashed by Rs 285 to touch Rs 7,980 per 10 gm after stockists off-loaded part of their holding triggered by reports of a plunge in global markets.

In Chennai, the metal fell to Rs 9,440, down Rs 235 over the previous close of Rs 9,675. In Kolkata, spot gold edged down by Rs 195 to close at Rs 9,450. In Mumbai, standard gold melted by Rs 195 at Rs 9,325, while pure gold (99.9) crashed by Rs 205 to settle at Rs 9,365.

In London, spot gold hit a low of $610.3 an ounce by afternoon, as against $615.1/615.9 in New York on Thursday, when it dropped nearly 2%.

Sluggish trend was also noticed in silver, as prices across the country lost heavily on reduced offtake by industrial units and coins fabricators. In London, the white metal hovered below $12 an ounce.

In Chennai, spot silver (.999) crashed by Rs 495 at Rs 18,915, followed by Kolkata, where white metal closed Rs 200 lower at Rs 18,200 per kg. In Mumbai it fell to Rs 18,905, revealing a fresh loss of Rs 155 over the previous close. In Delhi, it lost Rs 150 to settle at Rs 18,600 per kg.

In London, spot silver, which normally tracks gold, was down to $11.89/11.99 an ounce from $11.94/12.04 in New York.