Gold tumbles from record high

Written by Press Trust of India | New Delhi | Updated: Aug 30 2013, 08:21am hrs
Gold prices on Thursday fell from record high by plunging Rs 1,575 to R32,325 per ten gram on profit-selling by stockists driven by recovery in rupee amid a weakening global trend.

Selling pressure emerged at existing higher levels as gold climbed to R33,900 after it touched R34,500 per ten gram intra-day on Wednesday with its biggest ever gain of R1,900 in the backdrop of the rupee hitting record low of 68.85 per dollar.

Besides the rupee recovering to 67.30, some retailers selling old scrap gold further influenced the trading sentiment, traders said.

They said the market also received impact of weakening global trend on optimism the US economic data may reinforce the case for the Federal Reserve to slow stimulus.

Gold in Singapore, which normally set price trend on the domestic front, lost 0.9% to 1,404.88 dollar an ounce and silver by 2.8% to 23.66 dollar an ounce.

Silver followed suit and plunged by R2,790 to R55,710 per kg on poor offtake by industrial users and coin makers at higher levels.

On the domestic front, gold of 99.9 and 99.5%purity tumbled by R1,575 each to R32,325 and R32,125 per ten grams, respectively. Sovereign lost R200 at R25,300 per piece of eight gram.

Silver ready nosedived by R2,790 to R55,710 per kg and weekly-based delivery by R3,700 to R55,300 per kg. The white metal had surged R3,700 in the previous session.

Silver coins also plunged by R3,000 to R89,000 for buying and R90,000 for selling of 100 pieces on poor demand at prevailing higher levels.