Mumbai: The gold extended its slide for the third straight session at the domestic bullion market here on Thursday as prices plunged Rs430 following sustained selling by stockists and investors coupled with subdued local buying interest as well as bearish international markets.
Silver dropped to hit over six-month low by breaching Rs41,000-mark on speculative sell-off and lack of industrial buying support. Standard gold (99.5% purity) dropped Rs430 to end at Rs28,345 per 10 grams from Wednesday’s closing level of Rs28,775. Pure gold (99.9% purity) also moved down by a similar margin to Rs28,495 per 10 grams as compared to Rs28,925 earlier.
Silver (.999 fineness) slumped by Rs755 to conclude at Rs40,710 per kg as against Rs41,465 previously. The level has not been seen since 9 June 2016. Globally, gold fell to its lowest since February, extending losses after its biggest monthly decline in more than three years, as a surge in oil prices boosted bond yields, denting interest in non-yielding gold as an alternative investment.
Spot gold was down 0.4% at $1,168.27 an ounce in early European trade while US gold futures for February delivery were down $4 an ounce at $1,169.90. Silver was 0.7% lower at $16.35 an ounce.