Mumbai: Gold prices tumbled to an eight- month low at Rs 8,600 on the bullion market here on 13 June on lack of buying enquiries coupled with persistent stockists offerings, triggered by fall in precious metals in global markets.
Off-marriage and festival season coupled with lack of industrial demand also pulled down the precious metals.
In the London market, gold was fixed lower in the morning at $644.10 per ounce as against afternoon fixing of $647.25 an ounce on 12 June.
In New York, gold and silver prices declined following higher treasury yields and more strength in the US dollar, traders said. August gold fell by $5.90 to $653.10 an ounce on the Comex division. Comex July silver also lost 18.5 cents to $13.09.
In the local market, standard gold (99.5 purity) dropped further by Rs 40 per ten grams to Rs 8,600, a level not seen since 13 October 2006, from Rs 8,640 previously. Pure gold (99.9 purity) also fell to Rs 8,650 from Rs 8,690 yesterday.
Silver ready (.999 fineness) moved down by Rs 160 per kilo to Rs 18,150 from Rs 18,310 previously.