The Hindu Business Line : Gold crashes on demand slump, tracks weak global trend

NEW DELHI: Gold prices crashed to lose Rs 350 at Rs 13,150 per 10 gram in the national capital today on hectic selling by stockists sparked by a weak global trend and drying up of retail buying.

Silver also tumbled by Rs 570 to Rs 17,920 per kg. The metal suffered heavy losses after its prices dropped in London for the third straight day as the dollar strengthened against the euro and oil prices slipped, reducing the metals appeal as an alterna tive investment and hedge against inflation.

Restricted buying by retail customers added to the downfall as buying for “Makarsakranti'' is almost over amid off marriage season, traders said. They said the metal in overseas markets, which normally set price trend here recorded a hefty loss of 37.70 dollar an ounce at 815.20 dollar as euro fell against the dollar on speculation that the European Central Bank will cut interest rates.

Oil extended last week's 12 per cent drop on concern that output cuts by OPEC would fail to counter lower demand and reduced concerns of inflation, they added. The weakening trend extended to silver after the metal for ready delivery tumbled by Rs 570 a t Rs 17,920 per kg and weekly-based delivery by Rs 600 at Rs 17,760 per kg.

Silver coins dropped by Rs 200 at Rs 26,300 for buying and Rs 26,900 for selling of 100 pieces. Standard gold and ornaments plunged by Rs 350 each at Rs 13,150 and Rs 13,000 per 10 gram, respectively. Sovereign lost Rs 100 at Rs 10,600 per piece of eigh t gram. – PTI

Prev: Unitech reschedules its loan of Rs 1,000 cr
Next: Mentha futures recover on short-covering

Business Line | NUS Index |