Gold plunges to 3-month lows, silver dips by Rs 1,550

Gold prices tumbled Rs 330 to trade over 3-month lows at Rs 26,170 per 10 grams at the bullion market on Wednesday, tracking a weak global trend amid easing demand from jewellers.

Silver also recorded a steep fall of Rs 1,550 to Rs 34,450 per kg on poor offtake by industrial units and coin makers.   

Bullion merchants said sentiments dampened after gold in global market plunged to the lowest level since March as a China-led equity market rout across Asia and the crisis in Greece boosted the dollar, dampening demand for the precious metal as an alternative investment.

Gold in Singapore, which normally sets price trend on the domestic front, dropped 0.7 per cent to $1,147.39 an ounce, the lowest since March 18 and silver sank 1.7 per cent to $14.81 an ounce.

Besides, falling demand at the domestic market from jewellers and retailers also weighed on the prices, they added.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 330 each to Rs 26,170 and Rs 26,020 per ten grams, respectively, a level last seen on March 17.

The precious metals had shed Rs 70 on Tuesday.

Sovereign followed suit and tumbled Rs 300 at Rs 23,000 per piece of eight grams.

Silver ready also dropped by Rs 1,550 to Rs 34,450 per kg and weekly-based delivery by Rs 1,840 to Rs 34,160 per kg.

Silver coins nosedived by Rs 1,000 to Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.