Gold tanks to multi-month low on global crash; silver sinks

Mumbai, Oct 31: Gold suffered its biggest fall in over 15 months and closed below the key Rs 26,000 per 10 grams mark at the domestic bullion market today on the back of massive selling from speculative traders and stockists.

Silver, too, plunged sharply to hit a four-year low due to panic unwinding by investors coupled with sluggish industrial demand. Standard gold (99.5 purity) plummeted by Rs 620 to end at Rs 25,960 per 10 grams against Thursday's closing level of Rs 26,580.

Pure gold (99.9 purity) also tanked by a similar margin to settle at Rs 26,105 per 10 grams from Rs 26,725. Silver (.999 fineness) nosedived by a whopping Rs 1,300 to end at Rs 37,035 per kg from Rs 38,335 yesterday.

Domestic sentiment turned bearish and highly volatile after the shiny metal tanked to the lowest levels since 2010 in worldwide trade following strong US economic data amid heightened speculation over an early rate hike a day after the Federal Reserve ended its historic monthly bond-buying plan.

On the global front, spot gold was trading sharply lower at USD 1165.80 an ounce in early European trade, while silver dropped to USD 15.88 an ounce.

PTI