Gold sheds Rs 325 on global cues

Selling pressure gathered momentum after reports of the metal falling the most in two weeks with the dollar rebounding from an all-time low against the euro, reducing the appeal of the precious metal as an alternative investment globally.

Silver, too, dropped in line with gold on reduced offtake by industrial units.

Market men said despite the ongoing marriage season, steep fall in its prices in the international market mainly attributed to the plunge.

 

The dollar rose against the euro and the yen on speculation that the financial companies will survive the credit crisis. Gold in New York dropped by $27.20 to $915.20 an ounce and silver futures for May delivery declined from 48.5 cents to $17.82 an ounce.

Standard gold and ornaments tumbled by Rs 325 each to Rs 12,060 and Rs 11,910 per 10 grams, respectively.

Sovereign followed suit and lost Rs 50 at Rs 9,900 per piece of eight gram.

In a similar fashion, silver ready fell by Rs 650 at Rs 23,550 a kg and weekly-based delivery by Rs 610 at Rs 23,290 a kg.