NEW DELHI: Gold prices on Friday tumbled by Rs 320 at Rs 15,770 per 10 gram in the bullion market here on frantic selling by stockists, sparked by reports that the metal in the global market suffered heavy losses as dollar rebounded.
Marketmen said selling pressure gathered momentum as the metal in the overseas markets recorded its biggest loss in the last two months after the dollar strengthened on signs that global leaders will act to stabilise global financial markets, boosting demand for so-called haven currencies.
Gold fell to 996.53 dollar an ounce from 1,020 dollar per ounce in New York. It had touched 1,024.28 dollar on September 17, the highest since it reached a record in March 2008.
"The weakening overseas trend has a deep impact on the domestic bullion market, which generally moves in tandem with the global market, which is already going through a lean period following a fall in demand at existing higher levels," said leading jeweller Rakesh Anand.
Meanwhile, silver ready plunged by Rs 550 to Rs 25,850 per kg and weekly-based delivery by Rs 805 to Rs 26,140 per kg. Silver coins fell from record high levels by losing Rs 100 at Rs 31,700 for buying and Rs 31,800 for selling of 100 pieces.
Standard gold and ornaments dropped by Rs 320 each at Rs 15,770 and Rs 15,620 per 10 gram, respectively. Sovereign fell by Rs 50 to Rs 12,900 per piece of eight gram.
