NEW DELHI: Gold prices tumbled by Rs 110 at Rs 13,150 per ten gram on the bullion market in New Delhi on Thursday on closure of overseas markets
for Christmas holidays amid deepening global financial crisis.
Trading activity turned bearish as overseas markets closed for long festival holidays and traders on the domestic front refrained from enlarging positions.
Marketmen said fall in the US spending and durable goods data signalled the American economy contracting 0.5% in the third quarter.
They said the global markets, which normally set price trend here, continued to raise concerns of slowing economic growth. The precious metals also fell as oil prices declined, reducing the metals appeal as an alternative investment, they added.
On the domestic front, traders were in holiday mood and refrained from enlarging their positions, and thus reducing the trading volumes.
Standard gold and ornaments fell by Rs 110 each at Rs 13,150 and Rs 13,000 per ten gram respectively. Sovereign was unchanged at Rs 10,600 per piece of eight gram.
Silver ready fell by Rs 100 at Rs 17,100 per kg and weekly-based delivery by Rs 75 at Rs 17,195 per kg. Silver coins were unchanged at Rs 26,800 for buying and Rs 26,900 for selling of 100 pieces.
