Gold, silver prices tumble on weak global cues

Both the precious metals, gold and silver tumbled in the national capital on Thursday on heavy sell-off by stockists, triggered by a weak trend in overseas markets.

While gold fell by Rs 400 to Rs 28,000 per 10 grams, silver plunged by Rs 1,500 to Rs 43,100 per kg on poor offtake.

Traders said sentiment dampened after gold fell to the lowest in more than 2.5 years after US Federal Reserve Chairman Ben S Bernanke said asset purchases may be reduced later this year as the US economy recovers.

However, marketmen said, weakening rupee, which made imports costlier, cushioned the fall to some extent.

Meanwhile, rupee after touching life-time low of 60 against the dollar, was trading at 59.77, still down by 107 paise over Wednesday's close of 58.70.

Gold in London, which normally sets price trend on the domestic front, dropped by 3.4 per cent to $1,304.75 an ounce, its lowest since September 30, 2010.

Silver fell by 6.2 per cent to $20.08 an ounce, the cheapest since September 14, 2010.

On the domestic front, gold of 99.9 and 99.5 per cent purity plummeted by Rs 400 each to Rs 28,000 and Rs 27,800

per ten grams, respectively.

The yellow metal lost Rs 80 on Wednesday. Sovereign followed suit and declined by Rs 200 to Rs 24,200 per piece of eight gram.

In a similar fashion, silver ready dropped by a whopping Rs 1,500 to Rs 43,100 per kg and weekly-based delivery by Rs 1,280 to Rs 42,450 per kg. Silver coins also nosedived by Rs 2,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.