Gold tumbles to 3-month low on weak global trend

Thu, May 1 05:00 PM

New Delhi, May 1 (PTI) In choppy deals, gold prices plunged to a three months low level of Rs 11,510 per 10 gram on the bullion market today as stockists sold part of their holdings due to weak global trend. The precious metal, which commenced the day at Rs 11,610, rose to Rs 11,670 before ending with a loss of Rs 120 at Rs 11,510 per 10 gram, a level last seen on January 23.

The market turned volatile as the gold, which is strongly related to the international markets, suffered losses as the metal in London fell to a low of 863 dollar an ounce. Marketmen said the trading activity was volatile and physical buying almost dried up at existing high levels.

The gold in London traded lower after initial rebound following the 25 basis points interest rate cut in the US last evening, they said. The gold fell in London to USD 863 an ounce from previous level of USD 871 an ounce.

The dollar-priced precious metal mostly move in opposite direction to the US currency. Some investors shifted their funds to bullion from weakening stock markets.

However, silver gained fresh ground on emergence of buying by industrial units and coin manufacturers. It rose by Rs 240 to Rs 22,610 per kg.

It touched the day's high of Rs 23,000 per kg. In local market, standard gold and ornaments fell by Rs 120 each at Rs 11,510 and Rs 11,360 per 10 gram.

Sovereign continued to be asked at last level of Rs 9,825 per piece of eight gram. On the other hand, silver ready rose by Rs 240 to Rs 22,610 per kg.

Silver weekly-based delivery rose to a high of Rs 22,800 before ending at Rs 22,400 per kg, still showing a gain of Rs 280. Silver coins continued to be asked a previous level of Rs 26,400 for buying and Rs 26,500 for selling of 100 pieces.

PTI.

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