Gold tumbles by Rs 220 on weak global cues

Gold prices tumbled by Rs 220 per 10 gm to Rs 14,765 on the bullion on Wednesday on fresh stockists offerings triggered by fall in the global markets.

Silver, too, declined sharply on lack of industrial demand coupled with lower advices from international markets.

Gold prices fell to the lowest level in more than a week in London as a strengthening dollar dimmed the metal’s appeal as an alternative investment. Gold for immediate delivery fell by $1.42 to $936.08 an ounce in the early trade. Gold futures for August delivery fell by 0.30 per cent to $936 an ounce in the comex division of the New York Mercantile Exchange.

Spot silver also moved down to $13.595 an ounce in London in the early trade.

Moving to the domestic market, standard gold (99.5 purity) fell by Rs 220 per 10 gm to Rs 14,765 from Rs 14,985 yesterday.

Pure gold (99.9 purity) also slipped to Rs 14,835 from Rs 15,060 previously.

Silver ready (.999 fineness) dropped by Rs 435 a kg to Rs 22,705 from Rs 23,140 yesterday.