Mumbai: Gold prices plummeted further sharply and closed below the psychologically important Rs 27,000 per 10 grams on the domestic bullion market here today following heavy speculative sell-off spooked by global uncertainty.
Lack of traditional investment buying in view of the ongoing inauspicious period ‘Shard’ as well as rallying stocks markets amid uneasy overseas sentiment against the backdrop of Fed rate hike fears also kept investors at bay, a bullion trader said.
Silver also dropped owing to reduced industrial demand.
Standard gold (99.5 purity) drifted by Rs 135 to settle at Rs 26,910 per 10 grams from Thursday’s level of Rs 27,045.
Pure gold (99.9 purity) also shed by similar margin to end at Rs 27,060 per 10 grams compared to Rs 27,195.
Silver (.999 fineness) slumped by Rs 190 to finish at Rs 41,710 per kg compared to overnight closing level of Rs 41,900.
Globally, the yellow-metal plunged to nearly eight-months low on continued unwinding from hedge funds amid growing Fed rate hike expectations ahead of FOMC meet.
Spot gold was sharply lower at USD 1,234.49 an ounce in early European trade.