LM:Gold tumbles by Rs1,250 as rupee, markets recover
New Delhi: Gold prices suffered the steepest fall in a week on Thursday falling by Rs1,250 to Rs30,950 per 10 grams in New Delhi on heavy sell-off by stockists as equity markets and rupee recovered after RBI’s fresh measures.
Silver also plunged by Rs1,800 to Rs53,700 per kg on poor offtake by industrial units and weakening trend in overseas markets.
Traders said the precious metals fell sharply following fast recovery in rupee against the dollar after the new RBI chief announced measures to boost economic growth.
The rupee was trading higher by 84 paise at Rs66.24 per dollar, while stock markets were up by over 2%, denting the appeal of gold considered as safe haven for investors during economic turbulences.
New RBI governor Raghuram Rajan came out with a slew of measures to rescue the battered financial markets to boosting growth.
Traders said a weakening trend in overseas markets on expectations for reduced stimulus in the US and limited military strikes against Syria, further influenced sentiment.
Gold in Singapore, which normally sets price trend on the domestic front, fell 0.7% to 1,381.35 dollar an ounce and silver by 0.9% to 23.27 an ounce.
On the domestic front, gold of 99.9 and 99.5% purity suffered Rs1250 loss each to quote at Rs30,950 and Rs30,750 per ten grams respectively. It had gained Rs1,100 in last two sessions.
Sovereign declined by Rs200 to Rs25,100 per piece of eight gram.
Silver ready dropped by Rs1,800 to Rs53,700 per kg and weekly-based delivery by Rs2400 to Rs54,600 per kg.
Silver coins also fell by Rs1,000 to Rs88,000 for buying and Rs89,000 for selling of 100 pieces.
