Gold slumps by Rs 500 to hit 1-month low at Rs 26,800

Rolling down gold prices dropped to one-month low by losing Rs 500 to Rs 26,800 per 10 grams in the national capital today on heavy selling by stockists driven by weak global trend.

 

This fall was in continuation to a steep fall of Rs 600 yesterday to hit a level last seen on April 17, after the metal tumbled in overseas markets driven by reports investors cutting their holdings.

 

Gold in Singapore, which normally sets the price trend on the domestic front, dropped by 0.4% to $1,387.30 an ounce, the cheapest since April 19.

 

Silver also plunged by Rs 1,000 to Rs 43,700 per kg on poor offtake by industrial units and coin makers.

 

Besides, investors shifting their funds from melting bullion to rising equity markets further influenced the trading sentiment to some extent.

 

On the domestic front, gold of 99.9 and 99.5 % purity plunged further by Rs 500 each to Rs 26,800 and Rs 26,600 per 10 grams, respectively. Sovereigns also dropped by Rs 300 to Rs 23,700 per piece of eight grams.

 

Silver ready dropped by Rs 1000 to Rs 43,700 per kg and weekly-based delivery by Rs 940 to Rs 43,940 per kg. Silver coins too tumbled by Rs 1000 to 74,000 for buying and Rs 75,000 for selling of 100 pieces.