MUMBAI: Gold prices tumbled to a two-and-a-half month low by slipping Rs 340 per ten grams to Rs 17,725 on the Bombay bullion market in the early trade due to persistent stockists offerings, triggered by a sharp fall in the global markets.
Silver, too, declined sharply to open at 1-1/2 month low on lack of demand from industrial users coupled with fall in the overseas market.
Gold for August delivery fell to three-month low by USD 25.10 to USD 1,158 an ounce yesterday on the Comex Division of the New York Mercantile Exchange. It was gold’s lowest level since April 26 and its biggest one-day decline since July 1.
Silver also retreated 3.2 per cent, the metal’s biggest one-day decline since July 1. September silver lost 57 cents to USD 17.63 an ounce.
Turning to the local market, standard gold (99.5 purity) fell by Rs 340 per ten grams to resume at Rs 17,725, the level not seen since May 10, 2010, from the overnight closing level of Rs 18,065.
Pure gold (99.9 purity) also fell by a similar margin to Rs 17,815 from Rs 18,155 yesterday.
Silver ready (.999 fineness) dropped by Rs 605 per kilo to Rs 28,975, from the overnight close of Rs 29,580. Previously it opened at Rs 28,950 on June 7, 2010 and on the same day it finished at Rs 28,855. (PTI)