Gold plunges to over 10-month low

Gold prices plunged to over ten months low by losing Rs 505 to Rs 29,470 per ten gram in the national capital on Thursday on frantic selling by stockists amid restricted buying, driven by a steep fall in overseas markets.

The current fall in gold drove down the prices to a level last seen on May 30 last year as the metal tumbled in New York by $25.70 to $1559.30 an ounce on fears the US Federal Reserve might scale back stimulus.

Tracking the general weakening trend, silver dropped by Rs 875 to Rs 52,275 per kg on restricted buying by industrial units and coin makers.

Trading sentiment turned extremely bearish on drying up of seasonal demand and stockists selling triggered by a steep fall in precious metal prices in global markets.

They said shifting of investor funds from melting bullion to rising equity markets was another dampening factor for the markets.

Gold suffered the second biggest fall this month after losing Rs 500 on April 3. On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 505 each to Rs 29,470 and Rs 29,270 per ten grams, respectively.

However, sovereign held steady at Rs 25,100 per piece of eight gram in restricted buying. In a similar fashion, silver dropped by Rs 875 to Rs 52,275 per kg and weekly-based delivery by Rs 885 to Rs 51,375 per kg.

Silver coins also nosedived by Rs 2,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.