Gold tumbles by Rs 360, silver by Rs 550

Both the precious metals suffered a setback due to heavy sell-off by stockists on poor demand at prevailing higher levels, and a weak trend in overseas markets, traders said.

Silver coins followed suit and declined by Rs 3,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.

In global markets, while gold fell to the lowest level in almost four weeks amid signs of slowing US growth and strengthening of dollar on speculation that European Union leaders will struggle to solve the debt crisis, silver slumped to the lowest level in 19 months.

In New York, gold dropped 1.8 per cent to USD 1,550.40 an ounce, the largest decline since June 21. Silver also shed 2.6 per cent to USD 26.10 an ounce, the lowest since November 18, 2010.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 360 each to Rs 30,060 and Rs 29,860 per 10 grams, respectively.

Sovereign followed suit and lost Rs 100 to Rs 24,400 per piece of eight grams.

Silver ready fell by Rs 550 to Rs 52,950 per kg and weekly-based delivery by Rs 725 to Rs 52,125 per kg.