The Hindu Business Line : Gold, silver crash

GOLD and silver prices witnessed a heavy fall on Thursday in the domestic market on decline in the dollar and China's move to slow its economic expansion.

Gold tends to decline on dollar strength as it is traded in dollar, while China's move has raised fears that its gold consumption, the third-highest in the world, will slip sharply. The fears led to an over $12 an ounce fall in gold prices in the global market on Wednesday night.Gold prices declined in Mumbai by Rs 170 for 10 gm. Gold standard mint ended at Rs 5,660 for 10 gm bar. Gold .999 fineness closed at Rs 5,710.

Silver crashed by Rs 785 a kg on fears of fall in industrial demand, mainly China, and also reports that India was buying silver from Beijing. Silver .999 fineness closed at Rs 9,030 a kg.

Gold and silver had been galloping to new highs on various factors. These include weakening dollar and unrest in West Asia besides uncertainty in the equity market. Gold is seen as a safe haven asset and Japan is one of the countries where investors have bet their future on gold.

Chennai: Bar silver: Rs 8,740.00; retail silver (per gm): Rs 9.35; Standard gold: Rs 5,670.00; retail ornament gold: Rs 525.00.

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