Gold dives to multi-month low on renewed selling; silver tanks

Gold prices fell sharply after a brief recovery to hit a near two-month low at the domestic bullion market here due to fresh bout of selling by stockists and investors' following highly volatile overseas sentiment.
Silver also plunged on the back of heavy speculative unwinding coupled with lacklustre industrial demand.
Prices of standard gold (99.5 purity) tumbled by Rs 260 to finish at Rs 26,455 per 10 grams from last Saturday's closing level of Rs 26,715.
Pure gold (99.9 purity) also slumped by a similar margin to conclude at Rs 26,605 per 10 grams as against Rs 26,865 previously.
Silver (.999 fineness) shed by Rs 345 to settle at Rs 37,215 per kg compared to Rs 37,560 last weekend.

Meanwhile, the shiny-metal plummeted sharply below the psychological significant USD 1,200 mark in worldwide trade - its lowest level in seven-weeks on strong dollar and also waning safe-haven demand after the debt-ridden Greece reached a tentative agreement with its eurozone creditors.
Moreover, some caution ahead of tomorrow's Federal Reserve Chairwoman Janet Yellen's testimony before Congress also weighed on the metal.
Spot gold was sharply lower at USD 1,193.10 in early European trading.