Silver tumbles to Rs 59,200 on global cues, gold falls by Rs 310

Silver continued its downward streak for the fifth straight day by dropping Rs 4,400 to Rs 59,200 per kg today due to heavy sell-off by speculators, amid a weakening global trend.

Gold also plunged by Rs 310 to Rs 22,345 per 10 grams on sluggish demand at existing levels. Silver coins also dipped by Rs 6,500 to Rs 63,500 for buying and Rs 64,500 for selling of 100 pieces.

Trading sentiments remained bearish as silver plunged in global markets, after futures exchange organiser CME Group announced the fourth and fifth increases in margin requirements since April 26.

Gold in global markets, which normally sets a price trend on the domestic front, fell by $3.20 to $1,513.30 an ounce and silver by 1.68% to $38.73 an ounce. Retail customers adopted wait and watch policy on expectations of further fall in the precious metals prices, also dampened the trading sentiment.  

On the domestic front, silver ready continued to face increased selling pressure and tumbled by Rs 4,400 to Rs 59,200 per kg and weekly-based delivery by the same margin to Rs 59,000 per kg.

Gold of 99.9 and 99.5% purity plunged by Rs 310 each to Rs 22,345 and Rs 22,225 per 10 grams, respectively. Sovereigns followed suit and lost Rs 100 to Rs 18,200 per piece of eight grams.