Mumbai: Gold prices took a fresh knock and slumped back to close below the psychological ₹ 25,000-mark at the bullion hub here on aggressive stockists and speculative unwinding amid short selling.
The overnight recovery proved to be short-lived as the metal once again turned to sell-off mode following extreme volatile overseas trend. Gold succumbed to heavy selling pressure in overseas market after weaker-than-expected data from China and the euro zone raised concerns about global growth amid mounting fears over an imminent Fed rate hike.
Standard gold (99.5 purity) plummeted by a whopping ₹ 445 to finish at ₹ 24,590 per 10 gm—its lowest level since 2011, compared to Thursday’s close of ₹ 25,035.
Pure gold (99.9 purity) also slumped by a similar margin to end at ₹ 24,740 per 10 gm from ₹ 25,185.
The domestic sentiment has been hit hard in recent days by the sharp plunge in the prices of key commodities worldwide trade, a bullion trader commented. Elsewhere, silver took a severe knock and tumbled sharply on frantic unwinding by savvy traders.
Silver (.999 fineness) tanked by ₹ 620 to conclude at ₹ 34,215 per kg as against ₹ 34,835 on Thursday.
On the global front, spot gold was sharply down at $1,083 an ounce in early European trading and silver was quoted lower at $14.49 an ounce.
