Gold below Rs 27,000 mark, lowest level in last 15 months

Written by PTI | Mumbai | Updated: Nov 1 2014, 23:48pm hrs
GoldYellow-metal took a severe hit and crashed below the psychological Rs 27,000 mark. (Reuters)
The bullion hub witnessed massive unwinding from speculators and savvy traders during the week with both the precious metals - gold and silver - crashing to multi-year lows as catastrophic sell-off in precious metals worldwide trade rattled domestic sentiment.

Federal Reserve's decision to end its bullion friendly bond buying programme earlier in the week, citing a significant confidence in the US economic recovery prospects despite a slowdown in many parts of the global economy, mainly triggered panic investor liquidation across the globe.

The asset-purchase programme known as quantitative easing measures (QE) was initially started in 2008 at the height of the global economic crisis.

Yellow-metal took a severe hit and crashed below the psychological Rs 27,000 mark - its lowest level in 15 months on the back of frantic selling coupled with lack of local buying support despite wedding season as buyers preferred to stay on the sidelines and watch development in global markets.

While, the industrial metal, silver stolen the limelight, plunging over 6 per cent to touch a four-year low under intense selling pressure.

On the global front, gold and silver crashed to their lowest levels since 2010 pressurised by strong dollar value as well as massive speculative selling by funds amid a strong rally in global financial markets.