Gold crashes to six-month low down by Rs 920

Gold on Thursday hit a near six-month low, losing Rs 920 to Rs 28,140 per 10 gm, on brisk selling by stockists after the metal recorded a steep fall in international markets.

Selling pressure gathered momentum after the yellow metal in overseas markets suffered heavy losses, sparking a major sell-off in the local market here, pushing it down to a level seen on September 7 last year, traders said.

Similarly, silver pared all the gains it made in yesterday’s trade losing Rs 2,200 to Rs 58,300 a kg, as speculators offloaded their positions for month-end settlements on the MCX.

Trading sentiment in gold dampened as in the global markets it fell by $100 to under $1,700-level per ounce on signs that the Federal Reserve will refrain from offering more monetary stimulus to boost the US economy. In New York last evening, gold tumbled by $100, or 5.6 per cent, to $1,688.40 an ounce, the lowest level since January 25.

In addition, retail customers refrained from purchasing gold at existing higher levels. This, too, dampened the trading sentiment to some extent.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 920 each to Rs 28,140 and Rs 28,000 per 10 gm, respectively.

Sovereigns followed suit and fell Rs 50 to Rs 23,500 per piece of eight gm. In similar fashion, silver ready nosedived by Rs 2,200 to Rs 58,300 a kg and weekly-based delivery by Rs 1,570 to Rs 59,600 a kg. The metal had spurted by Rs 2,050 yesterday. Silver coins also fell by Rs 2,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces on demand at prevailing higher levels.