Drops by Rs 460 to Rs 11,830 in Delhi

Gold fell to a six-week low level below Rs 12,000 to Rs 11,830 per 10 grams on the bullion market on Tuesday on heavy selling by stockists influenced by a weakening trend in global markets.

Gold dropped by Rs 460 to Rs 11,830 per 10 grams, a level last seen on February 19, as the precious metal traded below $900 an ounce after the greenback strengthened against the euro.

Also, a drop of over $4 a barrel in crude oil and a broad decline in commodities prices reduced the metal's appeal as hedge against inflation.

Marketmen said on emergence of panic selling in line with record plunged in the precious metals prices at overseas front mainly led to the fall in both gold and silver prices.

Gold fell by $20.18, or 2.2 per cent, to $896.70 an ounce in London, the first drop since February 15. Silver also lost 44 cents to $16.795 an ounce.

Standard gold and ornaments tumbled by Rs 460 each at Rs 11,830 and Rs 11,680 per 10 grams, respectively. Sovereign, too, lost Rs 125 to Rs 9,800 per eight gram piece.

In a similar fashion, silver ready attracted heavy selling and nosedived by Rs 1,270 to Rs 22,230 a kg and weekly-based delivery by Rs 1,410 to Rs 21,700 a kg. Its coins traded lower by Rs 100 to Rs 26,500 for buying and Rs 26,600 for selling of 100 coins.