Gold and silver too take a beating on global cues

Gold slumped on hectic selling by stockists and investors amidst subdued jewellery offtake following a sustained fall in overseas markets. Silver, too, dropped owing to speculative selling pressure on the back of lower industrial demand.

Standard gold (99.5 purity) shed Rs.165 to close at Rs.27,940 per 10 gm from Tuesday's closing of Rs.28,105. Pure gold (99.9 purity) also dipped by a similar margin to finish at Rs.28,070 per 10 gm from Rs.28,235.

Silver ready (.999 fineness) tanked Rs.1,110 a kg to end at Rs.52,440 against Rs.53,550 previously.

In Europe, gold continued its fall on broad-based sell-off following heightened worries over political turmoil in Greece. Spot gold was bid down at $1,534.54 an ounce in early trade, silver also bid lower at $27.44 an ounce.

Suresh Hundia, President-Emeritus, Bombay Bullion Association, said “Internationally, there are several factors such as the Greece debt crisis and the eurozone issues which could precipitate a further 10 per cent correction.

“And, in the domestic market, a further weakening of the rupee, given the strong dollar, could lead to a reaction in gold.”