Gold plunges on demand slump amid year-end sell-off

Gold prices fell sharply at the domestic bullion market here on the back of heavy unwinding by speculators and investors as well as lack of local buying support at existing levels.
Elsewhere, silver also tanked under intense selling pressure from savy traders, amid subdued industrial offtake.
Standard gold (99.5 purity) dropped by Rs 225 to conclude at Rs 26,660 per 10 grams from Monday's closing level of Rs 26,885.
Pure gold (99.9 purity) also skidded by a similar margin to end at Rs 26,810 per 10 grams compared to Rs 27,035.
Silver (.999 fineness) plummeted by Rs 550 to finish at Rs 37,045 per kg against previous level of Rs 37,595.

In worldwide trade, the shiny metal rebounded from overnight slide on safe-haven buying following renewed worries over Greece and also pressured by weak dollar.
Spot gold was bid higher at USD 1,185.00 an ounce in early European trade, while silver edged higher at USD 15.89 an ounce.