Gold tumbles on investors' selling amid global weakness

Mumbai, Sep 2: Gold prices tumbled to two-and-a-half month low at the local market here today following heavy profit-taking by speculative investors' spooked by weak overseas cues.

Silver also plunged sharply and closed below Rs 43,000 per kg level owing to large-scale unwinding from stockists amid reduced industrial demand. Standard gold (99.5 purity) slumped by Rs 215 to settle at Rs 27,555 per 10 grams from overnight closing level of Rs 27,770.

Pure gold (99.9 purity) also dropped by a similar margin to end at Rs 27,705 per 10 grams against Rs 27,920. Silver (.999 fineness) tanked by Rs 425 to conclude at Rs 42,740 per kilo as compared to Rs 43,165 yesterday.

Globally, the shiny metal slipped to nearly one-week low, pressured by stronger dollar amid concerns that the Fed would raise interest rates earlier than anticipated on the back of robust US macro data. Spot gold was lower at USD 1,28120 an ounce in early European trade.

PTI