Gold slumps on global sell-off, silver hits three-month low

Mumbai, Sep 24: The unprecedented global sell-off in commodities hit the domestic bullion market hard, as the precious metals continued to witness heavy liquidation by speculators and traders here on Friday.

Gold slumped and silver bore the most brunt by plunging to a three-month low as panicky investors resorted to frantic unwinding amidst fears that the worst was yet to come.

Rising fears of world economy falling into prolonged recession stomped investors minds after Thursday's US Fed reserves'' grim comments of gloomy economic outlook resulting in hectic sell-off in equities and commodities.

In overseas, gold lost its safe haven tag and hit a one-month low as selling continued to offset their losses on other assets.

Standard gold (99.5 purity) tanked by Rs 555 per 10 grams to end at Rs 27,475 from Thursday's closing level of Rs 28,030.

Pure gold (99.9 purity) tumbled by Rs 580 per 10 grams to close at Rs 27,585 from its overnight close of Rs 28,165.

Silver ready (.999 fineness) crashed by a whopping Rs 6,530 per kilo to conclude at Rs 56,875 from Rs 63,405 yesterday.

In Europe, spot gold was quoted at USD 1,718.95 an ounce in early trade, while silver was trading at USD 33.65 an ounce.

PTI