Gold fall is steepest in history
Crash-like conditions developed on the bullion market on Saturday as the price of gold recorded its biggest ever fall, of `1,250 per 10 grams, to hit a one-year low on frantic selling by stockists amid a steep fall in overseas markets.
Gold, which had been plummeting this week and traded below `30,000, fell further sharply by `1,250 to `28,350 per ten grams, a level last seen on April 7 2012 following its steepest fall, of $84 to $1,477 an ounce, in global markets.
“Gold suffering such a big single-day fall of `1,250 has never been seen before and it may lose more ground in coming days mostly influenced by speculative selling in futures markets,” said All-India Sarafa Bazar vice-president Surender Jain.
He said the market was mostly driven by global markets and the futures trade, while there was hardly any physical buying.
Gold in New York, which normally sets price trends on the domestic front, tumbled to its lowest since July 2011 on signs that investors are favouring the dollar and equities as the global economy recovers.
Market experts said despite the ongoing Navratra festivities, an auspicious week in India for purchasing precious metals, retailers remained on sidelines on expectations of more correction in prices.
Meanwhile, gold in futures trading dipped below `28,000 on the Multi Commodity Exchange of India on Saturday as speculators remained net sellers.
Silver also recorded a steep fall of `2,500 to `50,100 per kg on falling demand among industrial units and coin-makers in the face of stockists selling on driven by a hefty fall of 6.54 per cent to $25.85 an ounce in New York.
On the domestic front, gold of 99.9 and 99.5 per cent purity suffered a whopping loss of `1,250 each at `28,350 and `28,150 per 10 grams respectively. Sovereigns followed suit and lost `300 at `24,800 per piece of eight gram.
In similar fashion, silver ready nosedived by `2,500 to `50,100 per kg and weekly-based delivery by `2,745 to `48,780 per kg. Silver coins also dropped by `2,000 to `77,000 for buying and `78,000 for selling of 100 pieces.
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