Gold prices fall sharply by Rs 600

Prices of gold tumbled by Rs 600 while silver fell sharply by Rs 1,590 a kg on the bullion market here today due to heavy selling by stockists which took cues from weak global markets.

Gold plunged by Rs 600 to trade at Rs 28,040 per ten grams. Silver dropped by Rs 1,590 to Rs 55,650 per kg triggered by a steep fall in overseas markets.

Selling pressure gathered momentum after gold in New York slumped the most in five weeks as the US economy added more jobs in January than forecast, signaling economic growth that may reduce the need for the Federal Reserve to expand stimulus measures.

Gold in global markets, which normally set price trend on the domestic front, recorded a sharp fall of 32.50 dollar to 1725.90 dollar an ounce and silver lost 2.01% to 33.67 dollar an ounce in New York last night.

On the domestic front, gold of 99.9 and 99.5% purity tumbled by Rs 600 each to Rs 28,040 and Rs 27,900 per ten grams respectively. Sovereign shed Rs 50 to Rs 23,350 per piece of eight gram.

Similarly, silver ready plunged by Rs 1,590 to Rs 55,650 per kg and weekly-based delivery by Rs 575 to Rs 56,125 per kg. Silver coins also dropped by Rs 2,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces.