Gold loses shine by `325 to `26,510 per 10 gm

Gold prices plummeted sharply to hit a two-week low at the domestic bullion market here following heavy unwinding from stockists and investors triggered by a sell-off in overseas.

Elsewhere, silver too came under intense speculative selling pressure and closed below the Rs 37,000 mark. Standard gold (99.5 purity) slumped by Rs 325 to finish at Rs 26,510 per 10 gram from overnight closing level of Rs 26,835.

Pure gold (99.9 purity) also tumbled by the same margin to end at Rs 26,660 per 10 gram, as against Rs 26,985 previously. Silver (.999 fineness) tanked by a massive Rs 680 to conclude at Rs 36,690 per kg compared to Rs 37,370 on Monday. In worldwide trade, the yellow metal tumbled to its lowest level in three-weeks on heavy bullion-funds selling amid strong dollar. Gold February delivery fell $16.20, or 1.4 per cent to settle at $1,179.80 an ounce on the Comex division of the NYMEX late Monday, while silver skidded to $15.688 an ounce.