New Delhi: Jittery global equity markets forced investors to sell precious metals on 17 August to arrange funds to pay for the losses in stocks, forcing both silver and gold to settle notably lower.
While gold lost Rs80 at Rs8,890 per ten gram on the bullion market, silver nosedived Rs1050 at Rs16,400 a kilo.
As the global markets, including domestic bourses, plunged in last two trading sessions, the market players sought to colsolidate in bullion markets.
The world financial markets, including bullion, remained distinctly infirm this week on concerns of widening financial crunch in the US banking system which extended to some european regions.
The ongoing off-season vis-a-vis marriage also negatively impacted the market sentiment to some extent, traders said.
Gold in overseas markets fell by $1.71 to $650.30 an ounce in London, for a weekly drop of $22.50, the biggest since the week ended 8 June. Silver also declined 9 cents to $11.70 an ounce, for a weekly drop of $1.155, the highest since 2 March.
Standard gold and ornaments surrendered Rs80 each at Rs8,890 and Rs8,740 per ten gram respectively while sovereign just about managed to hold previous level of Rs7,600 per piece of eight gram.
Likewise, silver ready suffered a setback of Rs1050 at Rs16,400 a kilo and weekly-based delivery recovered by Rs70 at Rs 17,340 on scattered support from speculators.
Silver coins, on the other hand, moved down by Rs200 each at Rs23,300 for buying and Rs23,400 for selling of 100 coins on poor demand.