Gold loses sheen, crashes to over 15-month low

Gold prices on Monday tumbled by Rs 750 to Rs 27,600 per 10 grams to hit an over 15-month low in the national capital due to persistent selling by stockists triggered by a heavy sell-off in global markets.

The precious metal, which had suffered the most ever in the previous session by losing Rs 1,250, today fell further to touch its lowest level since December 31, 2011.

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Silver followed suit and plunged by Rs 2,100 to Rs 48,000 per kg in continuation to a drop of Rs 2,500 on Saturday on poor offtake by industrial units and coin makers.

Selling further gathered momentum as gold on the global front plunged to the lowest level since April 2011 on speculation that some central banks selling and expectations of some economic recovery.

In London, gold dropped by $90.70, or 6.14 per cent, to $1,386.30 an ounce. Silver also fell by 10.52 per cent to $23.13 an ounce.

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Besides on the domestic front, weak trend at the futures market, where both the precious metals, silver and gold, hit their daily lower limits, further fuelled the downtrend.

Also in the spot market, gold of 99.9 and 99.5 per cent purity tumbled by Rs 750 each to Rs 27,600 and Rs 27,400 per 10 grams, respectively.

Sovereigns declined by Rs 100 to Rs 24,700 per piece of eight grams. 

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In line with a general weak trend, silver ready dropped further by Rs 2,100 to Rs 48,000 per kg and weekly-based delivery by Rs 2,880 to Rs 45,900 per kg.

Silver coins plummeted by Rs 3,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.