Gold drops sharply in early trade

Gold drops sharply in early trade

Mumbai: Gold prices resumed sharply lower by Rs315 per 10 grams to Rs12,705 in the bullion market here on 19 September on fresh stockists offerings on the back of lower global advices.

Silver also opened lower by Rs555 per kg on lack of demand at higher levels.

In Tokyo, gold prices edged down from high as the dollar and equities rallied after US officials scrambled to help to mop up more of the toxic debt that has sunk markets and triggered a flight from risk.

Spot gold was trading at $842.10 per ounce down from a nominal New York close of $847.25 yesterday (18 September).

Yesterday, gold prices shot up by Rs1,265 per ten grams in a single day while silver also registered its second biggest gain of Rs1,795 per kilo on the back of steep rise in global metals amid melting stock markets.

In the domestic market, standard gold (99.5 purity) opened lower by 15 per 10 grams to 2,705 from the yesterday’s closing level of 13,020 and pure gold (99.9 purity) also resumed lower at 2,770 as compared to 3,090 yesterday.

Silver ready (.999 fineness) fell by Rs555 per kg to Rs20,105 from Rs20,660 previously.