Snapping its six-day, record-making rise, gold’s dream to climb the Rs. 18,000-level was shattered as the metal tumbled on the bullion market here on Friday on frantic selling by stockists triggered by a sharp fall in international markets.
The Dubai debt concerns impacted investor sentiment across the globe, leading to a sharp fall in gold in overseas markets as the dollar rebounded sharply from its 15-month low. Silver prices too crashed on the impact of the crisis.
“The fall in gold was mainly attributed to the debt crisis as there is no demand existing at higher levels. The decline would be a blessing in disguise for consumers as the marriage season is in full swing,” traders said.
Standard gold (99.5 purity) dropped by Rs. 275 (10 gm) to Rs. 17,615 from Rs. 17,890. Pure gold (99.9 purity) slumped by Rs. 270 (10 gm) to close at Rs. 17,705 against Rs. 17,975 on Thursday. Silver ready (.999 fineness) dropped sharply by Rs. 490 a kg to finish at Rs. 28,775 against Rs. 29,265.
In Europe, gold dropped nearly 5 per cent to a one-week low at $1,140 an ounce as dollar rallied on Dubai debt
