Bullion mkt reopens after 16 days; gold tumbles 5% to Rs 1,750

Silver sheds almost 7% to Rs 41,600 a kg; jewellers shut since Nov 11 after I-T Dept carried out surveys, suspecting profiteering, tax evasion

With bullion market reopening after 16 days today, gold prices witnessed a massive plunge of Rs 1,750 to Rs 29,400 per 10 grams in the national capital, while silver slumped by Rs 3,100 to Rs 41,600 per kg.

Gold and jewellery establishments had been closed since November 11 after the Income Tax Department carried out surveys following reports of alleged profiteering and efforts at tax evasion in the wake of government's demonetisation of move.

The survey operations were conducted on November 10 in at least four locations in Delhi-NCR region, including Dariba Kalan, Chandni Chowk and Karol Bagh.

The government on November 8 announced the demonetisation of 500 and 1,000 rupee notes to flush out black money.

In the national capital, gold of 99.9 and 99.5 per cent purity dipped by Rs 1,750 each to Rs 29,400 and Rs 29,250 per ten grams, respectively, while sovereign lost Rs 200 at Rs 24,400 per piece of eight grams.

Gold prices on November 10 stood at Rs 31,150 per 10 gram and silver at Rs 44,700 per kg.

Silver ready prices plunged by Rs 3,100 to Rs 41,600 per kg and weekly-based delivery by Rs 2,725 to Rs 41,175 per kg. Silver coin followed suit and nosedived by Rs 3,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

Globally, gold traded 0.75 per higher at $1,192.80 an ounce, while silver rose 3 per cent to $16.80 an ounce in Singapore.