Gold plunges on speculative sell-off, silver falls below 50KPosted on Thursday, December 29, 2011 - 18:47 pm
The industrial metal, silver too crumbled below the Rs 50,000 per kilo mark for the first time in 10 months under the impact of massive unwinding from speculators and savvy traders.
"Speculators and investors are taking out profits fearing the yellow-metal may fall further as overseas traders are bearish on gold at this juncture and cashing out their long positions before the year-end," a bullion trader commented.
Standard gold of 99.5 per cent purity tumbled by Rs 845 to end at Rs 26,570 per 10 grams from Wednesday's closing level of Rs 27,415.
Pure gold of 99.9 per cent purity also plummeted by a similar margin of Rs 845 to conclude at Rs 26,695 per 10 grams from Rs 27,540 yesterday.
Silver ready (.999 fineness) tanked by a hefty Rs 2,815 to finish at Rs 49,140 per kg from overnight close of Rs 51,955.
On the global front, gold fell sharply extending its slide for five day on the back of strengthening dollar amid cautious ahead of the Italian bond auction late today in thin year-end trade.
In New York, gold for February delivery slid USD 31.40 to settle at USD 1,564.10 an ounce on the Comex division of the NYMEX late yesterday.
Silver March contract dropped by USD 1.51 to close at USD 27.23 an ounce.