Gold prices dive Rs 1,097/gm, silver crashes by Rs 1,574 a kg

Gold prices on Friday crashed by Rs 1,097 to Rs 42,600 per 10 gram in the national capital as investors moved to other assets, including rupee after an appreciation in the domestic currency, according to HDFC Securities.

The stock market too rebounded after plunging over 10 per cent in the opening session.

The yellow metal had closed at Rs 43,697 per 10 gram in the previous session.

Silver prices also plummeted by Rs 1,574 to Rs 44,130 per kg from Rs 45,704 per kg on Thursday.

Spot gold for 24 karat in Delhi was trading lower by more than Rs 1,000 on rupee appreciation, HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

"The spot rupee was trading around 23 paise stronger against dollar during the day on RBI intervention," he added.

The Indian rupee staged a recovery in the afternoon session, trading 36 paise higher against the US dollar, after the Reserve Bank stepped in to maintain sufficient liquidity in the panick-stricken currency market.

"Gold prices traded volatile on Friday with international spot gold prices hovering near USD 1,585 after witnessing sell-off on Thursday's evening session," Patel said.

Globally, gold was trading higher at USD 1,584 per ounce, while silver quoted lower at USD 15.65 per ounce.