Gold plunges to 7-week low

Gold prices on Friday crashed to touch a seven-week-low level at Rs 11,550 per 10 gm on the bullion market here as investors rushed to liquidate their holdings for raising funds to meet stock market losses.

The yellow metal dropped Rs 400 to Rs 11,550 per 10 gm, a level last seen on September 11, on brisk selling by stockists after the Sensex recorded the second steepest fall in its history.

Stock markets nosedived and bullion prices collapsed after the RBI kept interest rates unchanged and downgraded the national economic growth to 7.5 per cent.

In Mumbai, standard gold fell by Rs 110 per 10 gm to Rs 11,530 on the bullion market. Silver ready also fell by Rs 235 per kg to finish at Rs 17,300.