Gold prices on Thursday witnessed the steepest single-day fall of Rs. 1,840 per 10 gram here on frantic sell-off from investors and speculators, mirroring the precious metals meltdown in global markets. Silver also tumbled in tandem with gold.
The precious metal, which was rallying in a phased manner at the domestic market after the onset of global recessionary fears, lost almost 9 per cent since three trading sessions from its Tuesday's record level of Rs. 28,145 per 10 gram.
On the global front, gold came under pressure after a plunge in futures trading on the back of a strong set of U.S. economic data and expectation of more Federal Reserve stimulus, along with second trading margin hike by the Chicago Mercantile Exchange Group leading to hectic profit taking by investors.
“The yellow metal may witness further fall as it is more vulnerable to global momentum where it is undergoing drastic correction on hopes of escaping recession,” a commodity trader said.
Standard gold (99.5 purity) nosedived by Rs. 1,840 per 10 gram to close at Rs. 25,670 from Wednesday's closing of Rs. 27,510. Pure gold (99.9 purity) also plummeted by Rs. 1,835 per 10 gram to end at Rs. 25,795 against Rs. 27,630.
Silver ready (.999 fineness) tanked Rs. 3,785 to finish at Rs. 60,545 from Rs. 64,330 a kg on Wednesday.
In Europe, spot gold was bid down at $1,711.99 in early trade and silver also quoted down at $39.16 an ounce.
