Silver falls on heavy selling, gold bounces back

MUMBAI: Silver slumped further at the domestic bullion market today on sustained selling by stockists even as gold rebounded on heavy investment buying and jewellery offtake.

In international market, gold rose to one-month high, due to weaker dollar as well as dismal US economic data outlook.

Silver ready (.999 fineness) plunged by Rs 1,125 per kg to end at Rs 56,340 from overnight closing level of Rs 57,465 per kg.

However, Standard gold (99.5 purity) rose by Rs 135 per 10 grams to finish at Rs 22,515 from Wednesday's closing level of Rs 22,380.

Pure gold (99.9 purity) also gained by a similar margin of Rs 135 per 10 grams to conclude at Rs 22,620 as against Rs 22,485 yesterday.

In Europe, spot gold was bid at USD 1,542.89 an ounce while spot silver was down at USD 37.20 an ounce.