Heavy selling by stockists and investors, triggered by a steep fall in overseas markets, caused gold and silver prices to plummet in New Delhi.
Gold prices on Friday tumbled by Rs. 1,150 to a 23-month low of Rs. 25,650 per 10 grams — in the national capital — on heavy selling by stockists and investors, triggered by a steep fall in overseas markets.
All round selling by stockists, responding to a free fall in overseas markets, coupled with investors shifting their funds to surging equities, primarily pulled down gold prices to a level last seen on August 9, 2011.
Silver also dropped by Rs. 1,490 to Rs. 39,010 per kg on poor off take by jewellers and coins makers.
Traders said the sentiment dampened, as gold in Singapore plunged to a three-year low by dipping below $1,200 an ounce, on improving US economic data strengthening the case for the Federal Reserve to reduce the stimulus package.
Gold in overseas markets, which normally sets price trends on the domestic front, dropped by $24.40 to $1,200.80 per ounce and silver by 0.05 per cent to $18.51 an ounce.
In the national capital, gold of 99.9 and 99.5 per cent purity registered a hefty fall of Rs 1,150 each to Rs 25,650 and Rs 25,450 per 10 grams, respectively. Sovereigns declined by Rs 200 to Rs 23,800 per eight gram piece.
In line with the gold trend, silver ready dropped by Rs 1,490 to Rs 39,010 per kg while weekly-based delivery rose by Rs 130 to Rs 39,700 per kg.
Silver coins also nosedived by Rs 2,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.