Gold prices suffer biggest ever loss on global cues
The
gold, which had been on rolling down mode this week and traded below Rs
30,000, fell further sharply by 1,250 to Rs 28,350 per ten gram, a
level last seen on 7th April last year following a steepest fall of 84 dollar to 1,477 dollar an ounce in global markets.
"The
gold suffering such a biggest single day fall of Rs 1,250 is never seen
before and may lose more ground in coming days mostly influenced by
speculative selling in futures markets,' said All India Sarafa Bazar
Vice president Surender Jain on Saturday.
He said the market was mostly driven by global markets and futures trade, while there was hardly any physical buying.
The gold in New York,
which normally sets price trend on the domestic front, tumbled to the
lowest since July 2011 on signs that investors are favouring the dollar
and equities as the global economy recovers.
Market
experts said despite the ongoing Navratras festival, an auspicious week
in hindu mythology for purchasing precious metals, retailers remained
on sidelines on expectations of more correction in the prices.
Meanwhile,
gold in futures trading dipped below Rs 28,000 on the Multi Commodity
Exchange of India today as speculators remained net sellers.
Silver
also recorded a steep fall of Rs 2,500 at Rs 50,100 per kg on falling
demand among industrial units and coin makers in the face of stockists
selling driven by a hefty fall of 6.54 percent to 25.85 dollar an ounce
in New York.
On
the domestic front, gold of 99.9 and 99.5 percent purity suffered a
whopping loss of Rs 1,250 each at Rs 28,350 and Rs 28,150 per ten grams
respectively. Sovereign followed suit and lost Rs 300 at Rs 24,800 per
piece of eight gram.
In
a similar fashion, silver ready nosedived by Rs 2,500 to Rs 50,100 per
kg and weekly-based delivery by Rs 2,745 to Rs 48,780 per kg.
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