Gold prices plunged to hit nearly one—and—a—half—month low at the domestic bullion market on Wednesday on hectic selling by stockists and investors on the back of sharp fall in overseas markets.
Silver also nosedived on frantic speculative selling pressure.
Standard gold (99.5 purity) dropped by a hefty Rs 635 per 10 gm to close at Rs 30,540 from Tuesday’s closing level of Rs 31,175.
Pure gold (99.9 purity) plummeted by Rs 630 per 10 gm to finish at Rs 30,670 from Rs 31,300.
Silver ready (.999 fineness) tanked by Rs 1,625 per kg to conclude at Rs 60,170 as compared to Rs 61,795 previously.
“A severe variation is going on in global market due to the precious metals losing their safe haven appeal amid a slew of positive economic news as well as progress over talks to avert so called US fiscal cliff,” a dealer said.
“However, the correction may perk up the local market amid ongoing wedding season,” he added.
In New York, gold fell over strong dollar amid rise in US home—builder confidence, progress in fiscal talks and credit— rating upgrade for Greece.
Gold for February delivery fell by $27.50 to $1,670.70 an ounce on the Comex division of NYMEX late yesterday.
Silver for March contract slid 61 cents to $31.67 an ounce.