Gold falls to year's low on global cues, restricted buying

Volatile conditions in the bullion market today had gold prices plummeted by Rs 425 to Rs 19,660 per ten gram, in line with weak global trend and reduced offtake by retailers at existing higher levels.

Silver prices, too, followed suit and slid by Rs 900 to Rs 36,100 per kg on stockists selling and industrial units refraining from buying at prevailing high levels.

Weak trend routed the bullion market at home after gold in international markets tumbled by nearly $36 to $1,333.70 an ounce, as a firming dollar eroded demand for the precious metals as an alternate investment.

Market analysts said heavy selling by stockists in tandem with a steep fall in its prices in overseas market and reduced offtake at existing higher levels pulled down both silver and gold prices. 

The gold of 99.9 and 99.5 per cent purity plunged by Rs 425 each to Rs 19,660 and Rs 19,560 per ten gram respectively. Sovereign followed suit and fell by Rs 150 to Rs 15,850 per piece of eight gram.

In a similar fashion, silver ready dropped by Rs 900 to Rs 36,100 per kg on poor offtake by industrial units and coins makers. It had surged to a record high of Rs 37,000 per kg in the previous trading.

Silver weekly-based delivery also plummeted by Rs 850 to Rs 35,540 per kg on lack of sizable speculators support. Silver coins lost Rs 200 to Rs 35,900 for buying and Rs 36,000 for selling of 100 pieces.