Gold down by Rs 380 on global cues

Gold prices tumbled by Rs 380 to below Rs 18,000 per ten grams on the bullion market today on heavy selling by stockists, taking cues from global markets, where rates for the metal fell sharply.

Standard gold and ornaments plunged by Rs 380 each to Rs 17,720 and Rs 17,570 per ten grams respectively. Sovereigns followed suit and tumbled by Rs 125 to Rs 14,175 per piece of eight grams.

Silver also fell by Rs 300 to Rs 28,600 per kg on reduced offtake by industrial units and coins makers.

Trading sentiment turned extremely weak after gold fell in overseas markets from near a five-month high on speculation that fresh support would be sufficient to contain sovereign debt risks and help maintain growth of the world economy.

Gold in global markets, which normally set the price trend on the domestic front, fell by one per cent to 1,196.10 dollar an ounce.

A fall in demand from retailers at existing higher levels and a weakening trend in futures trade further dampened the market sentiment to some extent.

In line with the weakening trend, silver ready fell by Rs 300 to Rs 28,600 per kg and weekly-based delivery by Rs 270 to Rs 28,345 per kg. Silver coins, too, traded lower by Rs 100 to Rs 34,000 for buying and Rs 34,100 for selling of 100 pieces.