Gold falls by Rs 230 on weak global cues

Gold prices today tumbled by Rs 230 to Rs 16,700 per 10 gram in the bullion market here due to sustained selling by stockists driven by weak global cues.

Silver fell by Rs 650 to Rs 27,550 per kg.

Prices plunged as stockists sold the precious metal, which in Asian regions heads for the biggest weekly slump on dollar's gain and dipped below $1,100 an ounce, marketmen said.

Gold in Singapore dropped to $1,088.65 an ounce as the dollar advanced to its highest in almost five months and equities fell on US banking reform plans and the prospect of slower growth in China.

Increased selling of scrap jewellery by retailers at existing higher levels also pulled down the prices, they said.

Standard gold and ornaments dropped by Rs 230 each to Rs 16,700 and Rs 16,550 per 10 gram, respectively.