Gold tumbles to 3-week low amid global sell-off

Mumbai, Oct 30: Gold prices fell sharply to a three- week low at the domestic bullion market here today following heavy profit-taking from stockists and speculators spooked by a sharp overseas fall.

Moving with the general trend, silver also crumbled owing to massive selling. The shiny metal suffered heavy losses worldwide on the back of frantic unwinding by exchange-traded funds after the US Federal Reserve ended its bullion friendly bond-buying program and signalled confidence in the US economic recovery, shifting focus to its first interest rate hike.

Standard gold (99.5 purity) slumped by Rs 375 to end at Rs 26,580 per 10 grams From Wednesday's closing level of Rs 26,955. Pure gold (99.9 purity) also dropped by Rs 380 to conclude at Rs 26,725 per 10 grams from Rs 27,105. Silver (999 fineness) tanked by Rs 590 to finish at Rs 38,335 per kg against Rs 38,335 yesterday.

On the global front, spot gold was trading sharply lower at USD 1204.46 an ounce in early European trade.

PTI