Gold plunges by Rs 220 on weak global trend

Gold prices today tumbled by Rs 220 -- the biggest fall this year -- to Rs 16,880 per 10 gram in the bullion market here on fresh selling by stockists influenced by a weak global trend.

However, silver gained Rs 50 to Rs 28,150 per kg on sustained buying by industrial units.

Selling pressure gathered momentum after gold in overseas markets tumbled as firming dollar eroded demand for the precious metal, considered as a safe bet, marketmen said.

They said the market remained under pressure as some investors shifted their funds to rising equity markets.

Gold in spot trading in the US markets last evening fell 1 per cent to 1,120.80 dollar an ounce.

Standard gold and ornaments dropped by Rs 220 each to Rs 16,880 and Rs 16,730 per 10 gram respectively. Sovereign fell by Rs 50 to Rs 14,000 per piece of eight gram.

Silver ready gained Rs 50 to Rs 28,150 per kg while weekly-based delivery fell by Rs 20 to Rs 27,800 per kg on lack of buying by speculators.

Silver coins continued to be asked at previous levels of Rs 33,700 for buying and Rs 33,800 for selling of 100 pieces.