Gold plummets by Rs 1,150; hits 23-month low in Delhi

Gold prices today plunged by Rs 1,150 to hit 23-month lows of Rs 25,650 per 10 grams in the bullion market here tracking weak global trends.

This is the third-biggest single day decline ever. The largest fall was of Rs 1,250 on April 13 this year.

In Mumbai, prices tumbled to 22-month low of Rs 25,130 per 10 grams by losing Rs 880.

Gold lost Rs 980 per 10 gram in Chennai and Rs 855 in Kolkata to close at Rs 25,440 and Rs 25,740, respectively.

Bullion traders attributed the sharp fall in the precious metal prices to the weak sentiment as gold prices in Singapore plunged to nearly three-year low and fell below $1,200 an ounce on improving US economic data strengthening the case for the Federal Reserve to reduce stimulus.

Gold in overseas markets, which normally sets the price trend for the Indian market, had dropped $24.40 to $1,200.80 an ounce and silver by 0.05% to $8.51 an ounce.

Investors shifting their funds to surging stock prices further influenced the market sentiment, traders added.

In the national capital, gold of 99.9 and 99.5% purity registered a hefty fall of Rs 1,150 each to Rs 25,650 and Rs 25,450 per 10 grams, respectively.

Silver ready dropped by Rs 1,490 to Rs 39,010 per kg.

Similarly in Mumbai, the standard gold of 99.5% purity plunged by a massive Rs 880 to end at Rs 25,130 per 10 gm. Pure gold of 99.9% purity tanked by a similar margin to close at Rs 25,265 per 10 gm.

At commodity exchanges also, the gold prices dipped below the Rs 25,000 level by falling Rs 434 to Rs 24,941 per 10 grams in futures trading as speculators reduced positions, tracking a weak global trend.

At the Multi Commodity Exchange, gold for delivery in August fell by Rs 434, or 1.71%, to Rs 24,941 per 10 grams in business turnover of 37,478 lots in the evening trade.

However, future prices, later, increased to Rs 25,300 per 10 grams as gold prices recovered in the London market to $1,212 an ounce at around 8.30pm Indian time.