Gold prices faltered to its three-month low at the bullion market here on Friday on frantic sell-off by stockists and speculators triggered by a sharp fall in international markets.
Silver too felt the jolt under the massive selling by traders hit its five-month low to settle below the 25,000-level per kg. “Fearing further correction in recession-hit overseas market, speculators went on a panic selling of precious metals at the current level to gain maximum profits as even equities too vulnerable at this stage,” traders said on Friday. Standard gold (99.5 purity) slumped by Rs. 515 per ten gram to close at Rs. 16,055 against Rs. 16,570. Pure gold (99.9 purity) dipped by Rs. 510 to Rs. 16,145 from Rs. 16,655.
Silver ready (.999 fineness) plunged by a huge Rs. 1,100 a kg to conclude at Rs. 24,965 against Rs. 26,065 previously.
In London, gold fell by nearly one per cent to below $1,050 an ounce as the dollar rose against euro and other basket of currencies impacted by euro zone debt.
