New Delhi, Nov 4 (PTI) Gold prices today tumbled by Rs 200 to close at Rs 11,800 per 10 gram in the bullion market here on heavy selling by stockists and general investors, who diverted their funds to the surging equity markets.
Silver prices too dropped by Rs 280 at Rs 16,850 per kg amid reduced off-take by industrial units.
Marketmen said most of the funds were shifted from bullion to equity markets after stocks extended their gain for a fifth day today with the benchmark Sensex rising over 290 points.
Gold has lost Rs 770 per 10 gram in the last four days despite a decent demand due to ongoing marriage season as surging stock markets eroded the appeal of the precious metal as a safe investment option, they added.
Gold, however, remained flat in the overseas markets.
In London, gold changed little as declining crude oil and firming dollar erode demand for the gold as a hedge against inflation.
In the domestic market, standard gold and ornaments fell by Rs 200 at Rs 11,800 per 10 grams and Rs 11,650 per 10 gram respectively. Sovereign, however, held unchanged at Rs 10,500 per piece of eight gram in limited buying activities.
Silver ready dipped by Rs 280 at Rs 16,850 per kg and weekly-based delivery by Rs 340 at Rs 16,790 per kg on reduced off-take by speculators.
Silver coins shed Rs 100 at Rs 26,900 for buying and Rs 27,000 for selling of 100 pieces. PTI
