Gold prices on Wednesday plunged to a one-month low by losing Rs 620 to Rs 26,680 per 10 gram on hectic selling by stockists, triggered by a steep fall in the precious metal’s prices overseas.
The current fall in the yellow metal prices placed it to a level last seen on May 28.
Silver followed suit and plunged by Rs 1,000 to Rs 40,500 per kg on poor offtake by industrial units and coin makers.
Traders said selling pressure gathered momentum after gold plunged to a 33-month low in overseas markets as weak US economic data strengthening the case for reduced stimulus from the Federal Reserve as the dollar climbed. Silver sank to its lowest level since August, 2010.
Gold in Singapore, which normally sets the price trend on the domestic front, dropped by 2.6 per cent to USD 1,244 an ounce, the lowest level since September 13, 2010 and silver retreated 4.5 per cent to USD 18.76 an ounce.
On the domestic front, gold of 99.9 and 99.5 per cent purity suffered a setback of Rs 620 each to Rs 26,680 and Rs 26,480 per 10 grams, respectively, a level last seen on May 28.
Sovereigns followed suit and lost Rs 200 to Rs 24,000 per piece of eight grams.
In a similar fashion, silver ready nosedived by Rs 1,000 to Rs 40,500 per kg and weekly-based delivery by Rs 1,025 to Rs 39,590 per kg. Silver coins plunged by Rs 2000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.