Millennium Post

Gold dips to 15-month low on global mayhem

The sell-off wave unleashed by panic-stricken investors and speculators gained momentum as gold plunged to over 15-month lows and crashed below the psychological Rs 27,000 per 10 gram level on the bullion market hub here on Monday amid global mayhem. Standard gold of 99.5 per cent purity nosedived by a staggering Rs 1,330 to finish at Rs 26,550 per 10 gm from the weekend’s closing level of Rs 27,880. Pure gold of 99.9 per cent purity slumped by Rs 1,325 to end at Rs 26,690 per 10 grams from Rs 28,015.

Mirroring the overall bearishness, silver too took a steep plunge, hitting a two-year low and crashing below the key Rs 47,000 per kg mark on frantic speculative liquidation. Silver ready (.999 fineness) tumbled by a hefty Rs 3,615 to end at Rs 46,990 per kg from last Saturday’s closing level of Rs 50,605.

In London, gold slid 4.5 per cent to $1,416.65 an ounce, rebounding from as low as $1,404.05. Silver dropped 9.2 per cent to $23.6 an ounce, the lowest since October 28. Prices entered a bear market on 2 April.

The yellow metal’s collapse in overseas markets after the bursting of the ‘gold bubble’ triggered panic among domestic investors, forcing them to unwind their position heavily. Gold prices have been on a sharp decline and breaking through all support levels since last Friday, dropping a whopping Rs 2,840 or 9.66 per cent. The bullion association expects gold imports to drop by 25 per cent during the ongoing wedding season.
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