Gold plunges on increased stockists selling, weak global cues

HYDERABAD (AP) -04-01-2012 - BL/ GOLD PRICE RISES - The Government on Wednesday approved a proposal making hallmarking of gold mandatory to protect consumers from unscrupulous jewellers. Buoyed by a firming global trend, gold prices rose further by Rs 225 to Rs 28,120 per 10 grams today , while silver rose by Rs 1,600 to Rs 53,200 per kg in the bullion market on increased offtake.The demand of the marriage season and rising trend in the international markets have mainly pushed up both gold and silver prices.-PHOTO: P.V.SIVAKUMAR .

Gold prices declined by Rs. 180 to Rs. 27,220 per 10 gram in the national capital on Monday on increased selling by stockists, triggered by a weakening global trend where it tumbled to four-month low.

Silver, however, held steady at Rs. 40,350 per kg.

Traders said persistent selling by stockists was triggered by a weakening global trend where gold tumbled to the lowest level since February as hedge funds pared bets on a rally in the metal as haven demand waned.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.7 per cent to $1,241.11 an ounce, the lowest since February 3 and silver by 0.7 per cent to $18.69 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity plunged Rs. 180 each to Rs. 27,220 and Rs. 27,020 per 10 gram, a fresh 11-month low, while sovereign lost Rs. 200 to Rs. 24,400 per piece of eight gram.

On the other hand, silver ready held steady at Rs. 40,350 per kg on scattered support, while weekly-based delivery shed Rs. 90 to Rs. 39,500 per kg.

Silver coins dropped by Rs. 2,000 to Rs. 75,000 for buying and Rs. 76,000 for selling of 100 pieces.

Meanwhile, the government on Monday slashed import tariff value on gold and silver to $408 per 10 gram and $617 per kg, respectively, in view of weakness in bullion prices globally.